Employment Practices Liability Insurance (EPL) is another form of management liability insurance designed to protect businesses against claims arising from employment‑related disputes. In practical terms, it provides insurance protection for allegations made by current employees, former employees or job applicants relating to how they have been treated in the workplace.
Common claims can include unfair or constructive dismissal, discrimination, harassment, bullying, victimisation, wrongful termination, failure to promote, breach of employment contract and retaliation. Defending such allegations can be costly, time‑consuming and may also have a significant impact on a business’s reputation and employee relations.
EPL Insurance offers financial protection by covering legal defence costs, settlements and compensation awards resulting from insured employment‑related claims. Without appropriate cover in place, businesses may be required to fund these costs themselves, which can be particularly challenging for small to medium‑sized businesses.
EPL policies are typically written on a claims‑made basis, meaning that claims must be reported/notified during the period of insurance. Policy wordings can vary between insurers and may include sub‑limits or requirements relating to HR policies, staff training, or disciplinary procedures. As such, it is essential that cover is carefully arranged and that your broker has a thorough understanding of your business and its employment practices.
Our team will be in touch with you as soon as possible to discuss your insurance requirements.