Employment Practices Liability

Employers are finding life more difficult every day because of actions taken by employees against them for a variety of reasons. These can relate to alleged discrimination, unfair dismissal and sexual or workplace harassment.

For this reason protecting yourself with an Employment Practices Liability Insurance protects both your company and its employees if they become legally liable to pay claims made by other employees, contract workers, temporary workers or any applicant for employment.

Why do you need it?

Even though the labour force is decreasing in size, it is becoming more educated and more aware of its rights. It is becoming much more litigious. The result is likely to be a steady increase in employer-related type claims. An “EPL” policy can assist employers reduce the business stress and cost exposure associated with such claims.

Due to complex legislation surrounding employment related issues, employers are finding themselves being sued by employees for issues such as unfair dismissal/termination, sexual harassment and discrimination.

Complaints also have several indirect consequences for your business:

  • bad publicity,
  • poor industrial relations,
  • workplace disruption, and
  • loss of productivity.

This on top of the direct financial cost if an employee pursues a legal claim Recent statistics show as much as one in three companies had been hit with an unfair dismissal claim in the recent year. The Department of Workplace Relations' "Changes at Work" survey reported that 1 in 6 workplaces experienced a sexual harassment complaint and 1 in 17 a racial harassment complaint.

Who is covered?

The insured is amended to include the insured entity, being the company and its subsidiaries as specified in the schedule. Please note: The D&O policy already provides cover for Insured person (being past, present or future natural person; i.e., director, secretary, executive officer or employees, acting in their capacity as directors and officers).

What is covered?

The policy cover includes:
legal liability for employment wrongful acts,
defence costs for employment wrongful act claims,
court ordered payment of reinstated employees salary for period from date of dismissal to date of reinstatement order,

This type of policy covers such matters as:

  • wrongful dismissal, discharge or termination of employment,
  • wrongful failure to employ or promote,
  • wrongful deprivation of career opportunity,
  • misleading representation or advertising in respect of employment,
  • wrongful disciplinary action,
  • negligent employee evaluation,
  • wrongful demotion,
  • breach of employment contract,
  • sexual or workplace harassment (including having a workplace environment conducive to such harassment),
  • wrongful discrimination,
  • failure to grant tenure, invasion of privacy, and
  • defamation.

What is the starting cost of a stand-alone EPL policy?

Premiums start from as low as $500.00 plus government and statutory charges.

There is usually an excess or a minimum co-insurance deductible of 10 per cent of the loss which is be borne by the insured. An employer with fewer than 10 employees conducting business in a low risk occupation risk such as a small manufacturing company or a small association would likely be rated at the minimum premium.

Is it possible to take out an EPL cover as part of a Directors & Officer’s policy?

Yes. It is possible to take out an EPL optional extension to a D&O policy and also in some Professional Indemnity policies.
For small to medium private businesses, we suggest Management Liability Insurance instead because it not only includes D&O cover but also the EPL option is automatically included.
There is a benefit to combining these policies together as often claims are brought both against the corporation and the alleged offending director or officer. Also, in joining both policies together, there is a saving on administration costs. Consequently this is passed on to you.

Is it possible to take out an EPL cover along with a full Risk Management program?

Yes. A company called Employsure offers a four pronged package:

  • clients receive a complete audit of their workplace documentation,
  • unlimited professional advice on workplace relations issues,
  • expert representation in courts and tribunals, and
  • comprehensive insurance cover if they face a claim.

Who can help?

An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you from market knowledge.
Call a good one.  Call CPR – Experts who will save you.
 

Latest News

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

read more

CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

read more