Employers Practices Liability
What is Employment Practices Liability?
In general, the coverage is designed to cover the defence costs and damages resulting from claims for wrongful employment practices brought by past, present or prospective employees against an organisation.
As a result of increased UK employment legislation, the possibilities for employment actions against businesses are multiplying.
Many staff are aware of their rights, and they can be quite prepared to take formal action against their employers if they think these rights have been breached, even if a breach has been unintentional.
Compensation awards are reaching six, even seven figures in the UK, setting precedents and giving employees everywhere a context for their grievances. Of course, outside the UK, companies with any kind of US exposure face the full force of class actions and history of huge settlements (“normal” for domestic US businesses who understand EPLI, but potentially devastating for a growing UK company, with say a small US outlet).
Employees are getting more litigious.
Our experience shows that employment tribunal cases have increased. But we also know that in reality businesses faced a lot more employment actions than that because so many are settled in private without ever getting to the tribunal.
Who should take Employment Practices Liability coverage?
Any company with employees wanting a higher degree of protection against the tide of ever increased UK employment legislation and feel they would benefit from the an experienced partner in defending and advising on employment issues. In many cases coverage can be taken as an extra section under a directors and officers policy.