The importance of having Directors & Officers (D&O) Insurance including Employment Practices Liability (EPL) Insurance
Employee legal actions are rising rapidly and many companies have been on the receiving end of employment tribunals. These are often complex involving multiple heads of action and are costly and complex to defend.
If you have a Directors & Officers policy, then an Employment Practices Liability (EPL) can be bought as an add on.
EPL covers your legal liability following an employment dispute. This includes your defence costs and expenses as well as any awards made against you, also matters that are settled out of court (subject to insurer approval).
In addition, it also covers your legal costs and expenses in respect of attendance at any employment or health and safety investigation, such as by the Health and Safety Executive, Commission for Equality and Human Rights and the Commission for Racial Equality.
EPL covers claims and disputes against your Company and/or individual directors, officers, managers, supervisors and all other staff employed.
Potential claims could be unfair and wrongful dismissals, unlawful discrimination (such as disability, sex, age, race and gender), harassment, employment related libel, slander, humiliation, deformation, infliction of emotional distress of invasion of privacy and many other types of employment practice violations.
The main exclusions would be matters occurring prior to the inception of the EPL policy.
The costs in defending some of the most common types of claims can be onerous and could significantly impact the cash flow of a small company, let alone be very distracting and stressful for the individuals concerned.
A Directors and Officers policy offers peace of mind from costly legal bills and will, in many cases, pay awards and claimants’ costs if awarded against you – that’s why we always ask if you have it in place.
If you require any further information in relation to this article, please let us know so we can answer your questions or signpost you to the appropriate insurance provider.