The difference between Employment Practice Liability Insurance and Legal Expenses Insurance

Although it can be purchased in isolation, Employment Practice Liability (EPL) normally forms part of a directors & officers liability or management liability insurance policy.

In order for a legal expenses insurer to provide indemnity under their policy, the policy will state that there has to be reasonable grounds of success. This may be a problem for the policyholder if they have not followed the correct procedures when dismissing an employee or making redundancies.

The EPL section under a directors and officers policy will provide the defence costs irrespective of the likelihood of success. Because of this very wide cover the policy excess is likely to be at least £2,500.

When choosing directors and officers insurance, it is worth checking if EPL cover is automatically included or if it can be purchased at an additional cost.  EPL claims have been steady on the increase and in the short term this is unlikely to change.

For more information on please contact Tony Gibbs on 0118 9165485 or complete one of our enquiry forms.

Author: Tony Gibbs | February 3rd, 2011

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Tony Gibbs
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