Employment Practices Liability Insurance is designed to protect employers of all size of business against the potential costs of employment practices actions. It covers claims such as age discrimination, sex discrimination, racial discrimination, unfair dismissal and other employment related claims.

With a potentially increasing litigious culture amongst employees, why take the risk? As cases get more expensive caps on award rise, it’s also worth bearing in mind the losses you may make with defence costs and HR management resources tied up.

What Is Employment Practices Insurance?

When it comes to the way employee actions are handled, the burden of proof lies heavily on the shoulders of employers.

Having strictly defined procedures in place for disciplinaries, dismissals and grievances must be followed to the letter, otherwise an employee case could be lost before it begins by default.

What’s more, even unfounded allegations from an employee take company time, resource and money to argue against. Employment Practices Liability insurance will protect your company, and management team, by meeting damages, judgements, settlements and defence costs for most employment practice violations.

These can include:

  • Wrongful dismissal or termination of employment.
  • Harassment or discrimination in the workplace on the basis of sex, race or religion.
  • Employment-related libel, slander or defamation.
  • Invasion of privacy.
  • The wrongful failure to employ or promote an employee (where the employee believes that raising a complaint has led to their employer discriminating against them).

Examples of what Employment Practices Insurance can cover:

  • Cover for legal costs, expenses and civil damages awarded against the company, including legal representation expenses.
  • Automatic cover for new or acquired subsidiary companies (subject to the size of the new company).
  • Pre-agreed rates for extended reporting periods.
  • Wide definition of employment wrongful act.

Why not contact us today to find out your options when it comes to employment practices insurance.

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