Employment practices liability

Cover for the cost of defending employment claims.

What it means

Employment practices liability covers legal costs and awards from claims such as unfair dismissal, discrimination and harassment.

Why it matters

Tribunal defence costs are substantial even when the employer wins, and costs are not usually recoverable from a claimant.

What it looks like in practice

Often bundled with legal expenses insurance, which typically requires you to take the insurer's advice line before acting — and cover can be refused if you did not.

What to watch out for

Not using the helpline. Many policies condition cover on following the advice given, and dismissing someone first and calling afterwards can void the claim.

Where to get proper advice

A broker, and read the conditions precedent carefully.