Any company that has faced an employment tribunal will know that the costs of defending their position are high, in terms of risk every company that has employees is at risk of being taken to a tribunal. In the current economic climate this risk is further exacerbated as redundancies may result in disgruntled ex-employees claiming unfair dismissal due to age, race etc.

The number of employment disputes going to tribunal are on the increase therefore we recommend that companies consider insuring against the risks by taking out Employment Practices Liability insurance which can be arranged as a stand alone policy or as an extension to an Directors and Officer insurance policy. Even if an employer successfully defends itself at a tribunal the legal costs are likely to run into thousands of pounds whereas Employment Practices Liability insurance cover can be arranged from £367.50.