Employment Protection Insurance for Employers

EPS – Protection for Employers

Working with the Employment departments of our law firm partners, we provide insurance indemnity for their clients in employment disputes covering costs, awards and settlements. Our policy also covers legal costs in pursuit of former employees who are in breach of restrictive covenants.

Our scheme allows the law firm to select their preferred charge out rate and this is factored into the premium for the insured client. All clients must undergo an employment procedures audit to confirm that they have up to date best practice procedures and contracts.

There is also an option to include Health & Safety prosecution defence which is linked to our law firm partners chosen Health & Safety consultants.

EPS + one

For clients who have not obtained EPS but are in receipt of an ET1 initiating claim, subject to a review of the merits of the case, the client can obtain indemnity for that dispute as the first claim on a standard EPS policy for which the law firm receives a fixed fee for that specific case. This provides law firm’s clients with cost certainty at the outset of a case.

Redundancy

Insurance cover is also available for uninsured employers anticipating a redundancy programme. For a modest premium rated on the number of redundant positions, indemnity can be provided against tribunal claims arising from a redundancy programme. The premium is determined by the number of redundancies and the solicitor’s selected charge out rate.

Excess of loss  

For larger employers, employment disputes are an inevitable cost to the business but the extent of that cost is unpredictable. To ‘fix’ such costs we can provide a policy which responds where the aggregate costs for that year exceeds an agreed sum. That sum is determined by the employment history of that employer.

The policy responds at the point where the costs exceed the agreed sum. However, at the conclusion of that year’s employment disputes, where that aggregate cost has not exceeded the agreed sum and all claims have been concluded, a partial return premium may be repaid to the insured.