An Employment Practices Liability policy typically covers claims arising from claims made by current employees, past employees or future employees. It seeks to cover your actual business, including its Directors and Officers.

An Employment Practices Liability policy becomes relevant from the time that your business first starts employing staff. It is also important to note that claims of this type are increasing with reliance on new technologies and a changing workplace environment, making the importance of Employment Practices Liability cover all the more fundamental. Is it really possible to be aware of every employee interaction, or every potential employee interview and appointment on a typical day?

From the moment you become aware of the incident, or circumstances that could give rise to a claim, the matter should be notified to the insurer so they can effectively manage the costs likely to be incurred. If the claim is successfully defended, or even if it is unsuccessful, the insurer will meet the legal costs incurred subject to usual policy terms and conditions.

Complaints arising from employment practices within your business can have severe direct and indirect consequences including brand damage, adverse publicity, a loss of productivity and a potential loss of profit.