Employment practices liability insurance

Employment practices liability insurance is a type of cover within our management liability portfolio. It provides cover for the cost of claims and investigations arising from your employment or non-employment of an individual. These can be brought by:

• Current employees
• Former employees
• Prospective employees.

Examples of potential employment practices liability claims and investigations may include:

• Wrongful dismissal or deprivation of a career opportunity
• Breach of a contract of employment
• Failure to follow employment law
• Harassment or unlawful discrimination.

Please note that this type of cover isn’t for employees becoming ill or injured at or through their work for you. That type of claim is covered by employers’ liability insurance. 
 

Who does employment practices liability insurance cover?

Employment practices liability insurance covers:

• The entity (business or organisation)
• Directors
• Board members
• Trustees
• Employees.

Employment practices liability can be purchased alongside key covers for both profit and non-profit organisations, including:

• For-profit companies – Directors’ and officers’ cover / Corporate legal liability
• Not-for-profit organisations – Trustee liability insurance / Professional and legal liability.

Get a quote for employment practices liability insurance. Contact us on 0808 2736 570  
Mon-Fri 9am-5pm.

You may feel you need employment practices liability cover if you have employees. Whether you’re a charity, a not-for-profit organisation, or a limited company, employing people can come with risks.  

No matter the nature of your business or the industry you work in, employment grievances can occur. Claims or investigations may arise from multiple scenarios. Whether from a claim for an invasion of privacy or for breaching a contract.

Further potential claims examples may include:

• Inappropriately handling the grievance of a charity employee
• Wrongfully depriving a TV and film production candidate of a career opportunity
• Constructive dismissal of a web developer
• Unlawful harassment of an employee at an accountancy practice.  

Employment practices cover isn’t legally mandated in the UK. However, other covers within the management liability portfolio don’t cover employment claims made against the organisation*. So, if you’re hoping for full coverage for employment practices, you may choose to add this to your policy.  

Other covers in the management liability portfolio are:

• Directors’ and officers’ insurance
• Trustee liability insurance
• Corporate legal liability insurance
• Professional and legal liability insurance.

*D&O/ Trustees & Individual Liability insurance can also cover some employment-related claims but only when they are made directly against individual people. 

The amount of employment practices liability cover you’ll need for your organisation could depend on your industry and the nature of your business. It may also depend on your overall number of employees.  

The size of your organisation can also be significant. For example, a large charity or company with many employees could potentially face multiple employee claims. You may choose to set higher indemnity limits if this is the case for your organisation.

At Hiscox, we can cover you for employment practices liability cover from £100,000 to £10 million. We work to tailor your policy to your circumstances. 

Hiscox employment practices liability insurance can help cover your business, directors, board members, trustees and employees for claims and investigations for:

• Wrongful, unfair or constructive dismissal (external link)
• Breaches of written or implied contract of employment
• Wrongful deprivation of a career opportunity
• Harassment, unlawful discrimination
• Defamation or invasion of privacy.

We can also help pay for:

• Legal representation costs in relation to other official examinations, inquiries and investigations into you
• Losses arising from any injunction brought by the Equalities and Human Rights Commission.

Please refer to the policy documents for the full details of inclusions and exclusions of this cover. Policy documents are available when purchasing online. You can also contact our customer services team for more information. 

Hiscox employment practices liability insurance does not cover claims, losses or investigations arising from:

• Fraudulent or dishonest acts committed or condoned by any insured party
• Membership or non-membership of any trade union, other than retaliation
• Death or any bodily or mental injury suffered by anyone, other than emotional distress
• Responsibility, duty or obligation imposed by law relating to health and safety, social security, unemployment, retirement or disability benefits, other than retaliation
• Failure to pay amounts you are contracted to pay employees, including salaries.

Please refer to the policy documents for the full details of inclusions and exclusions of this cover. Policy documents are available when purchasing online. You can also contact our customer services team for more information.