Employment Practice Liability

There are good reasons to consider Employment Practice Liability insurance from AIG

Increased risk of litigation

Our experience shows that employment tribunal cases have increased globally. But we also know that, in reality, businesses face a lot more employment actions than the tribunal cases allow to understand, because many are settled without ever getting to a tribunal.

Can your management keep up?

Much is expected of employers in their handling of employee actions. The burden of proof lies heavily with employers. Strictly defined procedures must be followed otherwise the case could be lost from the start by default. It is a lot to keep up with and management should consider protection against even innocent slip ups.

Managing your reputation

A public case can be bad for the reputation of a company and its leaders. Our clients get access to high quality public relations assistance to plan and manage a communication strategy that will help manage the company’s public image.

Growing legislation

Today, there is a broad range of legislation for businesses to keep track of, such as legislation on all sorts of discrimination. Strict enforcement in areas like sexual discrimination is reflected in the number of cases. Insurance helps protect the company and management by meeting damages, judgements, settlements and defence costs for many types of violations.

The financial costs are rising

Cases are getting more expensive as the caps on awards are increasing. Businesses also need cover against defence costs and they pay the employees’ costs as well if cases are lost.

Research support

The company and its subsidiaries may use the services of an independent expert who will work to clarify the circumstances of an actual or alleged wrongful act involving an employee. Our policies take a wide interpretation of who an ‘employee’ is.


Who is covered?

  • The company taking the insurance cover and its subsidiaries
  • Any director or officer, or employee in a managerial or supervisory position, of the policyholder or any subsidiary  and any outside entity executive serving     at an outside entity at the request of the policyholder or any subsidiary
  • The spouse or partner of an employee, director or officer
  • The executor or trustee of a deceased person's estate

What is covered?

Employment Practices Liability insurance covers employment-related claims made against the company, employees, directors and officers. Employment-related claims allege various Employment Practices Violations, which include discrimination, sexual harassment, retaliation, wrongful discharge and other violations of law related to employment practices.

This material is for the purposes of information only. Full coverage details will be available in the policy documentation.

For additional information please contact us.