Employment Practices Liability Insurance

Cases of employees bringing action against their employers have become a common sight. The media interest that typically surrounds employment claims, along with the pervasiveness of social media, means that the public can closely follow these cases and the unpleasant details that make up this class of claim.

Employment-related risks are among the most potentially damaging exposures due to their inherent link to public notions of community standards and morality. These legal suits can not only result in significant financial loss but also cause irreparable damage to an employer’s reputation and brand.

Defending against an employment-related claim is also time consuming, expensive and disruptive to an employer’s business. For employers, the growing risk makes it necessary to consider how such a claim might affect the company, from legal fees and settlement costs to damage to reputation and brand, and whether measures are in place to minimise both the risk and the impact.

Employment and workplace relations are governed by complex and rapidly changing laws and regulations. Standard policies, procedures and training are no longer enough to protect employers from employment-related litigation.

Such an environment means that insurance solutions have become imperative.

This paper examines in detail the spectrum of risks faced by employers and discusses the extent to which Employment Practices Liability Insurance (EPLI) could reduce the cost and impact of an employment-related claim.