Employment Practices Liability Insurance

Employment Practices Liability Insurance

Employment Practices Liability (EPL) insurance provides businesses and organisations with protection against claims made by employees.

 

Employment Practices Liability (EPL) insurance provides businesses and organisations with protection against claims made by employees.

Inevitably, 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.

Given our increasingly litigious world, EPL insurance is critical for all businesses and organisations, large and small.

What does EPL insurance Cover?

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.

EPL insurance can be a stand-alone insurance cover however it is often included in Directors’ & Officers’ (D&O), management liability and associated liability policies.

Important note

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.