News & Blog
What is employment insurance and do we need it?
We all know that employing people can be rewarding and challenging in equal measure and, let’s face it, businesses would grind to a halt without a good team.
Managing your workforce in a small to medium-sized business can become a real headache as typically we don’t have the expertise in-house to deal with issues which may arise. We also don’t have the resources to employ a HR manager.
There are lots of professionals out there who are able to help with contracts of employment, handbooks, policies and procedures etc. Many of whom can also help you manage issues such as:
- Persistent absence
- Long-term sickness
Whilst help with these issues can greatly help with the day-to-day running of your business, what happens if things get legal?
This is where Employment Practices Liability comes in.
The cover is designed to provide you with the legal support you need in the event of a potential employment tribunal. In addition to this, the cover will also pay any awards made against you should the tribunal not go your way.
If arranged correctly, this cover will support you regardless of whether you have followed the correct procedures or consulted with a specified advice line.
Beware however of cheap imitations!
There are a number of providers of HR services, who also supply an “insurance backed” helpline service. Whilst these services are cost-effective and have a place, the insurance cover provided comes with conditions, which make claiming particularly difficult.
So the cover is out there, but do you need it?
In recent years employment tribunals became particularly rare, in view of the fees charged in order to bring a claim. However as this legislation was overturned in 2017 and the fees abolished, the number of tribunal claims has increased massively in the last 6 months or so.
It may now be worth reviewing your insurance provision and considering whether you can afford to ignore the protection that Employment Practices Liability cover can provide.
If you’d like to know any more, feel free to get in touch.