Claims from your employees can be costly - be prepared with Employment Practices Liability insurance

Ensuring adequate protection against employment practice claims can be a valuable component of your risk management strategy. These days, employees are often even more aware of their legal rights.

Employees may be entitled to take legal action in relation to their employment, including in relation to their perceived treatment by employers and colleagues in the work place. These actions can be very expensive and may place a large financial burden on a business. This insurance provides cover for defence costs, awards of damages and awards of costs or settlements for certain employment related issues, including:

• Unfair dismissal
• Wrongful refusal to employ
• Wrongful failure to promote
• Wrongful demotion
• Sexual harassment
• Discrimination
• Defamation
• Breach of employment contract

Claims examples regarding Employment Practices Liability*

Wrongful dismissal

A senior employee is dismissed after lodging complaints of bullying and aggressive conduct by the managing director. Complaints are also made of racial discrimination and disability discrimination by the managing director. Action is commenced in the Federal Court and the matter is settled for a six figure sum.

Harassment and discrimination of third parties

A service provider makes allegations of harassment and discrimination against the company. Two employees are named and the company is vicariously liable for the offending conduct. The case is settled for a five figure sum.

_{*Please note, we have changed specific details to ensure confidentiality and that these examples are illustrative only and not to be relied on to justify coverage in any particular situation.
Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arranges this insurance and is not the insurer. The Insurer is Chartis Australia Insurance Limited (Chartis) ABN 93 004 727 753, AFSL 381686. This brochure contains general information. It does not take into account your individual objectives, financial situations or needs and may not suit your personal circumstances. This is a basic guide only providing a summary of the type of cover Marsh can arrange on your behalf. For full details of the terms, conditions, exclusions and limitations please refer to the relevant policy document which is available from Marsh. Under this arrangement Marsh does not offer you products from alternative insurers. You have the choice to make alternative arrangements with regard to your insurance options. 11/0177}