Financial Risk - Employment Practice Liability

The number of employment related claims is on the increase. Legislation has significantly expanded employers obligations and the broad interpretation of the law is to the benefit of employees. This is resulting in increased frequency and severity of claims.

With compensation for unfair dismissal increased to £50,000 and unlimited liability for discrimination and harassment claims, companies need to consider these risks carefully.
Employment Practice Liability Insurance protects the company and its Directors and Officers for a claim brought by a current, prospective or past employee for a broad range of employment obligations such as:

• Wrongful dismissal.
• Breach of any oral or written employment contract.
• Misrepresentation.
• Racial discrimination.
• Disability discrimination.
• Sexual harassment.
• Wrongful failure to promote.
• Wrongful deprivation of a career opportunity.
• Negligent appraisal.
• Breach of Data Protection Laws.
• Defamation.
• Wrongful infliction of emotional distress.