Employment Practices Liability Insurance

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Employers can be held liable for claims made by employees alleging discrimination based on sex, race, age or disability, as well as wrongful termination, harassment and other employment-related issues.

A breach of employment law can have a huge financial and reputational impact on a business. The number of lawsuits taken against employers is increasing rapidly and the cost of defending them may destroy a business, even if the business successfully defends the lawsuit.

If you have an Employment Practices Liability insurance policy in place, this protects the business against financial losses from claims made by employees for a wide range of employment practice violations. Defence costs are covered even if the allegations are unfounded. Defending allegations can be expensive and time-consuming whether they are substantiated or not.

Cover can extend to the company and subsidiaries, any employee, director or manager while in acting a professional capacity and even the spouse or partner of an employee, director or officer.

In a culture where more claims are being brought against not only firms but also individuals within a business, it is important this insurance is in place.

If you would like to get in touch, please complete the enquiry form below or call us on:

020 7543 2807

Claims Examples

Sexual harassment allegation

Repeated comments made by a manager in a morning meeting resulted in a payment of more than £100,000 to three former employees alleging sexual harassment.

Harassment and emotional distress allegation

An invited guest of a summer associate to a picnic was subjected to derogatory remarks by an alcohol-fuelled partner while other partners stood by idle. The harassment and emotional distress claim resulted in a large payout being made.