Employment practices liability insurance (EPLI) is a critical type of cover that provides various protections for policyholders. Employers face a variety of risks related to employment practices liability claims. These claims became more common every year in the UK between 2015 and 2018. An EPLI policy can have a major impact on offsetting the costs and losses of potential legal action.
There are a variety of laws in the UK that employers must abide by in order to ensure that they are providing and maintaining a suitable work environment for their workforce. These laws—such as the Employment Act 2002, Race Relations Act, Disability Discrimination Act, Sex Discrimination Act and the Equality Act—are intended to hold employers accountable for potentially unjust or irresponsible behaviour.
An employment practices liability claim can have a devastating effect on not only an organisation’s finances, but also its reputation. This means that an EPLI policy is not only a valuable level of protection for an employer in the present, but also in the future.
Employment practices liability claims can stem from a variety of potential misconduct. Fortunately, EPLI policies provide cover for a variety of types of claims, such as:
While an EPLI policy will provide valuable cover in the event of an employment practices liability claim being filed, the best way for an organisation to mitigate losses is to minimise the chance of an issue occurring in the first place. Employers should consider these steps in order to assess, address and reduce their potential exposures:
Employment practices liability claims are a legitimate and consistent threat for employers. Organisations should already strive to provide a healthy and safe environment for employees, but these claims make the potential consequences for not doing so extremely severe.
For more information on EPLI policies, contact us today.