What is employment practices liability (EPL) insurance?
EPL is designed to:
Protect companies, directors and officers and employees against the legal and financial impact of claims made by employees for harassment, discrimination, and wrongful termination amongst others.
Why should companies consider EPL insurance?
Employers are facing increasing legal obligations while managing their workforces. Employees rights to be treated fairly are protected by a raft of legislation, including:
- The Employment Act 2002
- Race Relations Act
- Disability Discrimination Act
- Sex Discrimination Act
- Equality Act
But with so many rules and regulations, without robust policies and processes you may find yourself with a disgruntled employee and a legal case to answer.
Over recent years there has been greater visibility of employment related litigation leading to increased public awareness of workers’ rights. The costs for an employer to defend and settle lawsuits can be considerable whilst the publicity can cause harm to a company’s reputation.
Many traditional liability policies do not cover employment liability matters, potentially leaving employers exposed to this growing risk.
What could be covered subject to policy terms and conditions?
An EPL policy can be designed to cover damages, judgements, settlements, verdicts and claims for:
- Wrongful, unfair or constructive dismissal
- Breach of written or implied contract of employment
- Wrongful deprivation of a career opportunity
- Harassment
- Unlawful discrimination
- Defamation or invasion of privacy
- Legal representation costs in relation to other investigations or official examinations