This basically covers any liability incurred from committing an unlawful act against an employee. These acts include any form of discrimination, sexual harassment, wrongful termination which in Texas is not an issue due to the “At Will” nature by law regarding employer/employee relationship, defamation, libel or slander, Invasion of privacy, unpaid overtime and or any wage disputes, misclassification of independent contractors as it relates to the question of contractor’s actually being employees. The most important component is the coverage of attorney’s fees as a sexual harassment case cost easily $100,000. The liability portion of these policies are not usually subject to deductibles but the payment of claims or settlements generally carry a $5,000 deductible. Suffice to say companies who have a diverse and or mixed gender population of employees should seriously consider having this coverage.