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Elite EPL Fact sheet

Employment Practices Liability

Large volumes of complex employment legislation have bombarded employers over the last
two years increasing their exposure to employment tribunal claims and making compliance
a time consuming duty that impedes business progress. The Survey of Employment Tribunal
Applications, carried out by the DTI, found that 57% of employers had dealt with tribunal
applications in the past. The increase in employees winning record awards in employment
tribunals has highlighted the need for companies to use Employment Practices Liability (EPL)
insurance as an essential risk management tool.
EPL insurance can protect companies against the financial impact of a claim. Elite EPL goes
further and offers dedicated cover for legal representation expenses in investigations without
depleting the cover available for losses that may follow from the investigations.
What is covered?
Elite EPL provides cover for:
p damages (including injury to feelings), judgments, settlements, defence costs, and awards
of claimants costs as well as pre- or post- judgment interest;
p legal representation costs for employment investigations. This coverage also adds an
additional defined limit of liability dedicated to such costs which is above and beyond
the basic limits available, leaving full policy resources for other claims during the period
including further claims that may follow from such investigations;
p cost of paying wages from the date of purported dismissal to date of judgment in the event
that the company is ordered to re-instate or re-engage worker;
p punitive and exemplary damages where insurable by law;
p acts committed prior to inception of the policy; and
p acts worldwide (except USA which can be added by endorsement)
Who is covered?
Elite EPL provides cover for:
the company;
p its subsidiaries, including automatic cover to subsidiaries acquired or created during the
term of the policy that increases the total number of workers up to 20%;
p past, present and future directors and officers;
p spouses, estates, heirs and legal representatives of directors and officers;
p past, present and future workers; and
p individuals who are not ordinarily considered workers (including independent contractors,
agency workers or secondees) can be covered by extension to the standard policy.

ACE European Group Ltd.

ACE Building
100 Leadenhall Street
London EC3A 3BP
+44 (0)20 7173 7000 tel
+44 (0)1293 597203 fax
Authorised and regulated by
the Financial Services Authority
Registered in England and Wales
number 1112892
April 2011

Who is included in the definition of worker?

Worker is broadly defined in employment law, such as the Employment Rights Act 1996.
Rights such as protection of wages, national minimum wage and flexible working hours are
all available to workers, not just employees.

What wrongful acts are covered?

Elite EPL offers protection against a comprehensive range of employment related allegations :
p wrongful or unfair dismissal, including constructive dismissal;
p breach of oral or written or implied contract;
p discrimination, whether based upon any category currently protected by law or that
becomes protected by law during the term of the policy;
p harassment of any kind, or the alleged creation of a harassing workplace environment
p retaliation, including:
tt any act of discrimination comprising victimisation
tt detrimental treatment because a worker has asserted an employment related right
tt detrimental treatment on grounds relating to union membership or activities
p breach of data protection laws;
p failure to provide accurate work references;
p wrongful discipline or demotion;
p wrongful failure to employ or promote or wrongful deprivation of career or training
p defamation, humiliation, invasion of privacy or false imprisonment.
Additionally, because the ever-changing landscape of liability in the workplace makes it
critical that an insurance policy be continually updated for new perils and causes of action,
Elite EPL includes cover for any actual or alleged employment-related breach of duty
whether arising under statutory law or common law or otherwise.
What constitutes a claim?
There is a broad definition of types of acts that constitutes the basis of a claim, including:
a written demand;
p a civil proceeding;
p an arbitration proceeding;
p a criminal prosecution;
p a legal administrative or regulatory proceeding; and
p an employment investigation.

Other highlights of Elite EPL

extension of cover for claims of harassment or discrimination brought by third parties (i.e.
non-workers such as customers or clients of the company).
p extension of cover for outside directorships held by directors or officers of the company.
p additional time for reporting of claims of 45 day after the expiration of the policy period.
p provision to advance defence costs up to the policy limit.
p availability of discovery period on a bi-lateral basis.
p no retention applied to claims brought solely against individual insureds
p retention reduction of 50% available for election and completion of Acas Arbitration
Scheme as respects a claim.

Employee rights are set to strengthen further, increasing the need for employers to protect
themselves against the potential financial loss an employee claim could incur. ACE has
nearly 10 years experience in Employment Practices Liability insurance and has a clear,
unambiguous policy wording offering one of the most comprehensive covers available in
todays market.
N.B. This information is descriptive only. Please refer to the policy document for full terms,
conditions and exception.