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Employment Practices Liability Insurance

Cases of employees bringing action against their employers have become a common sight. The media interest that typically surrounds employment claims, along with the pervasiveness of social media, means that the public can closely follow these cases and the unpleasant details that make up this class of claim.

Employment-related risks are among the most potentially damaging exposures due to their inherent link to public notions of community standards and morality. These legal suits can not only result in significant financial loss but also cause irreparable damage to an employer’s reputation and brand.

Defending against an employment-related claim is also time consuming, expensive and disruptive to an employer’s business. For employers, the growing risk makes it necessary to consider how such a claim might affect the company, from legal fees and settlement costs to damage to reputation and brand, and whether measures are in place to minimise both the risk and the impact.

Employment and workplace relations are governed by complex and rapidly changing laws and regulations. Standard policies, procedures and training are no longer enough to protect employers from employment-related litigation.

Such an environment means that insurance solutions have become imperative.

This paper examines in detail the spectrum of risks faced by employers and discusses the extent to which Employment Practices Liability Insurance (EPLI) could reduce the cost and impact of an employment-related claim.


Managing workplace exposures with employment practices liability insurance

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”