Employers Liability Insurance (EL) or Employment Practices Liability Insurance (EPL)?

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Many of our commercial clients have recently queried the difference between Employers Liability Insurance & Employment Practices Liability Insurance. So here is a brief overview:

Employers Liability Insurance is normally intended to cover the cost of defending and/or paying compensation for claims brought against an insured company as a result of death, injury or illness of an employee due to the negligence of the insured company.

Examples:
1. Employee has an accident whilst operating a machine and sues the company for compensation. Solicitors for the employee may argue that the company did not provide adequate training or that the company did not provide a safe place of work, both of which the company is required to do under health and safety laws.
2. Employee falls whilst working on a building site and sues the insured company for compensation. Solicitors for the employee may again argue that the company did not provide adequate edge protection on site and that as a result, the company did not provide a safe place of work.

Employment Practices Liability Insurance normally covers defence and/or settlement costs arising from a range of issues such as sexual harassment, bullying or discrimination in the workplace.

Examples:
1. Manager is accused of sexually harassing an employee over a period of time. A claim is brought against the insured company (employer) for failure to adequately deal with the manager in question resulting in stress and emotional suffering to the employee.
2. Employee sues on the grounds of discrimination because a colleague was promoted above them despite the fact that the employee in question had more experience and was better qualified for the position.

If you would like to read about real cases – search google for: ‘high court sexual harassment case’…. etc.

If you would like a quotation, please call us on 049-4332944, e-mail info@martininsurance.ie or complete our online enquiry form.

Disclaimer: The material contained is this article is for general information purposes only and does not constitute professional advice.

James Martin
James Martin
James Martin has 16 years of experience as a general insurance broker. He is a member of the Chartered Insurance Institute and has completed a Diploma in Corporate Finance.

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