Employment disputes are often inevitable. The tough economic environment and raft of new employment legislation in recent years has increased companies’ exposure to such disputes. Effective risk management and risk financing are crucial when managing this exposure and the potential legal costs it entails.
Employment practices liability (EPL) insurance is one of the key risk management tools for employers. It protects the company against allegations of ageism, sexism, racism, sexual harassment, wrongful termination and other alleged breaches of employment law brought by employees, former employees or potential employees.
Coverage is designed principally to protect your company, its directors, officers and current/former employees. The insurance covers legal defence costs and any settlement an employer might have to make at the end of the legal process.
WHAT WE DO
Employment practices liability insurance is a complex and nuanced insurance purchase, the disclosures and claims handling approach require an experienced and strong practitioner to navigate these complexities. JLT prides itself in offering a balanced and revenue neutral view on all insurances offered and this class is a key example of this approach in practice.
Employment practices insurance is not an endeavour for all companies in all sectors. There are many examples where the implementation of this insurance (particularly where poorly managed) is harmful to the reputation of a business within the insurance market. In some cases, HR issues are treated in a highly secretive manner and late notice and non-disclosure issues create an environment of mistrust.
We would take the time to really understand your business and your situation for this exposure and determine if this is a risk that can or even should be transferred by insurance and run through the steps necessary to work to this goal.
This can include modelling different disaster scenarios, understanding key reporting and HR processes, highlighting where conflicts of interest exist and working with you on insuring or managing these exposures.
Our team’s technical and global market knowledge extends across different market cycles providing experience and foresight to help you secure the optimal market solution, whether you feel your risk is complex or transactional.
Our team negotiates directly with the market on your behalf, converting the messages we discuss into a market appropriate dialogue faithfully. Through this diligence our clients are provided with better service and results. Key messages are not diluted and insurers view us as empowered negotiators who can speak knowledgably about our clients.
OUR MANAGEMENT LIABILITY TEAM’S KEY STATS
Employers need protection from employment practices liability (EPL) lawsuits. What’s more with JLT is that you receive advice from an EPL expert:
sharing best practices and providing you with a better understanding of your risk exposure
with a single-minded commitment to cost management and claims performance
a practical problem solving approach, proven in resolving common issues
who will build the service delivery around your business needs
providing you the confidence and trust that you will always get the best results possible
treating you as a partner at all times
offering an integrated team that offers the depth of expertise, service and resource that your business needs.
Subject to the policy terms, conditions and exclusions, an employment practice liability insurance policy will pay the loss from any claim in connection with employment practices liability.
Employment Practices Liability Definition
Any liability arising from any actual or alleged act, error or omission with respect to:
any employment of any past, present or future employee or insured person of the company;
any prospective employment of any person; or
any harassment of or discrimination against any natural person third party who is not an employee.
Key Policy Definitions:
Main Policy Exclusions:
Claims arising out of, based upon or attributable to the actual, alleged or threatened discharge, dispersal, release or escape of, or records concerning, pollutants; or any direction or request to test for, monitor, clean up, remove, contain, treat, detoxify or neutralise pollutants.