Employment Practices Liability Insurance
Expert cover for companies and employees
Employee litigation is becoming commonplace. No company is immune to it, and the costs of defending against employee claims can devastate a business. There is no limit to the maximum sum that can be awarded to an employee claiming discrimination and harassment, so the balance-sheet protection provided by an employment practices liability insurance policy is invaluable.
Travelers’ employment practices liability insurance is designed to protect both a company and its employees when they must answer to allegations that an employee’s rights were violated – including claims of sexual harassment, discrimination and wrongful termination. The insurance covers the cost of defence, settlements and judgments associated with claims.
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In your business, you make decisions every day. Hiring, firing, pay levels, duties, promotions, work environment and so many more. Nearly every one of your decisions affects your employees, and nearly every outcome could lead to a claim by employees or regulators for wrongful employment practices.
These claims can disrupt business, hurt employee morale, and damage your reputation, and cost your business financially, even before going to court.
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And once you're there, the stats are not on your side. Winning a case is a coin toss. 50% of plaintiffs come out on top in trials, and even victory can be costly.
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Asterisk: 2013 JV Research.
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It is not uncommon for legal fees in employment practices cases to exceed 225,000 pounds. Let's look at a typical case. An elderly employee was let go by his employer and promptly sued for discrimination. The employer argued the man was discharged for being unable to perform the essential functions of the job.
The employee claimed he was fired because of his age and disability. The employer lost the case and paid over 200,000 pounds in defence and settlement costs. In another case, an employee claimed she was retaliated against, suspended and eventually fired because she had complained to management about her working conditions.
She sued the company and its director of human resources for wrongful termination, failure to promote and defamation. Defence and settlement costs exceeded 1.1 million pounds. With all the potential risks in the workplace today, you need an insurance company that can protect your company's bottom line. That's why Employment Practices Liability coverage isn't a maybe, but a must have. Ask your broker how Travelers UK can help ensure your business is protected.
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Logo and text: TRAVELERS. For more information on Employment Practices Liability coverage, please visit travelers.co.uk/managementliability
The information provided in this video is intended for use as a guideline and is not intended as, nor does it constitute, legal or professional advice. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome. Travelers does not warrant that the information in this video constitutes a complete and finite list of each and every item or procedure related to the topics or issues referenced herein. Furthermore, laws, regulations, standards or codes may change from time to time and you should always refer to the most current requirements and take specific advice when dealing with specific situations. In no event will The Travelers Companies, Inc. or any of its subsidiaries or affiliates be liable in tort or in contract to anyone who has access to or uses this information. Copyright 2016 Travelers Management Limited. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the US and other countries.
Our appetite
We cover
These fall within our appetite, and we’re happy to discuss details.
- Advertising
- Agriculture
- Airlines
- Automotive
- Chemicals
- Construction
- Consultancy
- Engineering
- Food and beverage
- Hospitality and leisure
- Housing
- Industrial machinery
- Logistics
- Manufacturing – general
- Manufacturing of metals/metal products
- Manufacturing of plastic/plastic products
- Mining
- Oil and gas
- Paper/packaging
- Property developers
- Real estate
- Research and development
- Retail
- Steel and speciality metals
- Technology
- Textiles
- Transportation
- Utilities
We’ll consider
We may need more information to confirm a fit.
- Gambling and betting
- Legal activities
- Medical and social care
- Pharmaceutical and life sciences
We do not cover
Sorry, we’re currently unable to insure the following.
- Medical marijuana
- Professional sport
- Religious or political organisations
- Tobacco
- Weapons
Employment practices liability covers & highlights
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Available on an aggregate or any one loss claims basis
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Broad definition of claim
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Broad definition of insureds, including directors, officers and other employees, as well as the company itself
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Broad definition of wrongful act
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Court attendance costs
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Full retaliation cover
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Multi-year run-off options
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No exclusion for reduction in workforce or mass layoffs
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Outside entity directors covered
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Warranty-free policies
Related products
Management liability
When losses and lawsuits pose professional and personal risks to a company’s leaders, management liability insurance can help them stay focused on running the business.
SME management liability package
Our online management liability package platform makes it easy to quote and bind coverage instantly, enabling our broker partners to quickly get broad, flexible coverage tailored to specific needs.
Directors & officers
Travelers offers broad, flexible directors’ and officers’ insurance through our expert underwriting team as well as our online platform.
Commercial crime
A company’s money and property can be attractive targets for theft. We protect against direct losses caused by an employee or third party.
Pension & trustee liability
Significant personal liabilities can fall upon individuals performing the trustee role out of good will. Our cover is designed to protect pension trustees when beneficiaries allege the trustees breached their duty.
IPO
When a company goes from a private to a publicly listed entity, exposures increase. A policy that includes initial public offering (IPO) helps cover the costs associated with defending individuals, should litigation arise.
Public & private companies
Management liability insurance can give company leaders confidence to carry on their duties if something goes wrong. Knowing they are protected helps keep leaders focused on positive business outcomes.
Cyber
Every company faces cyber threats and risks. Cyber cover helps businesses deal with the increasing complexity of digital crime.
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