An ever increasing number of cases are being brought by employees against their employers for allegations of sexual harassment, discrimination on the grounds of race, religion, sexual orientation or disability, wrongful dismissal, breach of employment contract, failure to employ or promote, deprivation of career opportunity and mismanagement of employee benefit plans. This additional business risk has resulted in insurers responding by offering businesses the option to purchase Employment Practices Liability Insurance.
This type of policy will protect you against claims by workers that their legal rights as employees of the company have been compromised. While most cases are filed against larger employers, no company is immune to such litigation and the resulting costs in preparing a defence can be substantial. Some specialist insurers will offer this cover as a stand-alone policy but more often than not it is purchased as part of a suite of covers known as Management Liability which can include Directors and Officers Liability, Corporate Legal Liability, Financial Crime and Pension Trustee Liability.