Commercial Legal Expenses Insurance can cover certain legal costs arising from employment disputes, depending on the policy wording and the circumstances of the matter.

Employment-related cover can include legal expenses incurred in defending proceedings brought by an employee, former employee or prospective employee. Depending on the policy, this may include disputes involving matters such as:

• Unfair dismissal.
• Alleged discrimination.
• Breach of an employment contract.
• Other employment-related legal proceedings.

Some policies may also provide cover for certain compensation awards or other employment-related costs, while others may limit cover to legal expenses only.

What conditions can apply? #

Employment dispute cover commonly depends on conditions such as:

• The circumstances first arising after the relevant cover began.
• The business complying with applicable employment procedures or legal requirements.
• The insurer being notified promptly.
• Legal representation and costs being approved where required.
• The matter meeting any reasonable-prospects requirement in the policy.

The exact conditions vary between insurers and policies.

Are existing employment disputes covered? #

Businesses should not assume that a dispute already underway, or circumstances already known before the policy commenced, will be covered.

Commercial Legal Expenses Insurance is generally intended to respond to unforeseen insured events rather than disputes that were already known.

Is this the same as Employment Practices Liability cover? #

No. Employment Practices Liability is commonly provided under Management Liability Insurance and can respond to certain liabilities arising from employment-related claims.

Commercial Legal Expenses Insurance is primarily designed around specified legal costs and legal proceedings. There can be overlap between the policies, so the relevant wording should be checked before assuming which policy will respond.

If an employment issue may lead to a claim, notify Webber Insurance early so the available policies and notification requirements can be reviewed.

Contact Webber Insurance for assistance with an employment-related insurance matter.