Employment Practices Liability (EPL) insurance provides businesses and organisations with
protection against claims made by employees.
when you are responsible for a number of employees, circumstances may arise
from decisions made about employment by business owners or senior management
that may cause angst with an employee. Even with the very best of intentions
and despite best practice work environments, miscommunication and mistakes do occur.
There are a
myriad of allegations that employees can make against an employer such as:
- Unfair dismissal
- Unlawful termination
- Bullying and harassment
- Gender or racial discrimination at work
A claim can
be made by a prospective, past or current employee regardless of whether they
have been employed on a full-time, part-time or casual basis.
increasingly litigious world, EPL insurance is critical for all businesses and
organisations, large and small.
What does EPL insurance
will compensate the business for legal defence costs, damages and any costs
required to settle the matter. Of course, the insurance will not cover any
situations deemed unlawful such as underpaying employees.
insurance can be a stand-alone insurance cover however it is often included in Directors’
& Officers’ (D&O), management liability and associated liability
It is important to note that a requirement of
EPL insurance is that claims be notified to the Insurer during the period of
insurance when the allegation is first made. Your Austral Risk Services
insurance broker and the Insurer can assist you to ensure the dispute is
resolved efficiently and cost effectively.