Employment Practice Liability Insurance

Employment Practices Liability (EPL) Insurance is becoming increasingly important for all employers. It is provided through Pound Gates & Company Ltd and provides cover for Directors and Officers, Corporate Liability and EPL.

Why do I need Employment Practice Liability?

ACAS dealt with over 96,000 applications to employment tribunals in the past year, almost a quarter of which ended with a tribunal hearing. Of the 115,000 complaints received, almost half were for unfair dismissal. 1 in 10 actions were brought under either the Sex Discrimination Act, Race Relations Act or Disability Discrimination Act. Around half of these were settled with between 15% to 20% progressing to tribunals.

Are you confident that you could keep up to date and comply with all of the requirements concerning: maternity, paternity and adoption leave: parents flexible working rights, sex, race, religious beliefs, disability and age discrimination, working hours, part-time workers rights, the minimum wage, trade union recognition and data protection?

The honest answer in most cases for small to medium size businesses is “No” and with the prospect of substantial awards and fewer penalties the growing trend is for disgruntled workers is to bring an action against their employers impacting heavily on management time and professional costs.

What's the diference between EPL and Legal Expenses Insurance?

Unlike a Legal Expenses policy there is no mandatory requirement to comply with an Insurers legal advice as a prerequisite to accepting a claim under the policy.

In addition, many Legal Expenses policies contain a ‘reasonable prospect of success’ clause which allows an Insurer to avoid paying the defence costs of an action that you the employer are unlikely to win. This is not the case with EPL Cover.

So how can I protect my Company?

Employment Practice Liability Policies are designed to protect you the company from covered claims resultant from past, present or prospective employees alleging “Wrongful Employment Practices”. Features Include

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• Cover for Liability and Defence Costs
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• Broad Definitions and Comprehensive covers available
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• Damage for Injury to Feelings
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• Punitive and Exemplary or Aggravated damages
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• No Dishonesty Exclusion
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• World-wide Coverage

What are “Wrongful Employment Practices”?

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• Wrongful or Unfair Dismissal
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• Discrimination
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• Harassment
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• Wrongful disciplinary action
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• Negligent evaluation
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• Wrongful demotion
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• Misrepresentation
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• Defamation
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• Invasion of Privacy
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• Breach of Confidentiality
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• Breach of Data Protection
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• Negligent references
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• Failure to employ or promote

What Types of Claim are Covered?

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• Tribunal Proceedings
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• Civil and Arbitration proceedings
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• Written Demands
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• Formal administration and formal regulatory proceedings
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• Requests for Reinstatement
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• Applications for Injunctive relief

Related Pages

Employment Law  Some of the legal issues that employers face.

 

Employment law  How we can help ensure you stay on the right side of employment law.

 

 

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