Employment practices liability insurance


Employment practices liability insurance can help protect your organisation and its leaders against claims from employees.  

It deals with the handling of employees. For example, employment law and contractual issues, such as claims of wrongful dismissal, breaches of contract, and unlawful discrimination.  

Employment practices liability cover can help a company or charitable organisation with the potential costs of investigations, defending claims and paying some awards.  

Please note that this type of cover isn’t for employees becoming ill or injured at or through their work for you. 
 

Please contact us for a quote for employment practices liability insurance: 
0808 2736 570 
Mon-Fri, 9am-5pm. 

 

Why choose Hiscox for your employment practices liability insurance?


1

Trusted insurer

We're trusted by over 400,000 businesses* so you know you're in safe hands.

*based on the number of policies sold in 2023

2

Online risk management platform included

When you take out employment practices liability cover, you’ll get free access to the Hiscox Risk Academy.

3

Add Business HR Solutions

For a reduced rate, you can add Business HR Solutions to your policy where you’ll unlock expert resources and advice.

What is employment practices liability insurance?


Employment practices liability insurance is a type of cover within our management liability portfolio. It provides cover for the cost of claims and investigations arising from your employment or non-employment of an individual. These can be brought by:

  • Current employees
  • Former employees
  • Prospective employees.

Examples of potential employment practices liability claims and investigations may include:

  • Wrongful dismissal or deprivation of a career opportunity
  • Breach of a contract of employment
  • Failure to follow employment law
  • Harassment or unlawful discrimination.

Please note that this type of cover isn’t for employees becoming ill or injured at or through their work for you. That type of claim is covered by employers’ liability insurance
 

Who does employment practices liability insurance cover?

Employment practices liability insurance covers:

  • The entity (business or organisation)
  • Directors
  • Board members
  • Trustees
  • Employees.

Employment practices liability can be purchased alongside key covers for both profit and non-profit organisations, including:

Get a quote for employment practices liability insurance. Contact us on 0808 2736 570  
Mon-Fri 9am-5pm.

Does my business need employment practices liability insurance?


You may feel you need employment practices liability cover if you have employees. Whether you’re a charity, a not-for-profit organisation, or a limited company, employing people can come with risks.  

No matter the nature of your business or the industry you work in, employment grievances can occur. Claims or investigations may arise from multiple scenarios. Whether from a claim for an invasion of privacy or for breaching a contract.

Further potential claims examples may include:

Employment practices cover isn’t legally mandated in the UK. However, other covers within the management liability portfolio don’t cover employment claims made against the organisation*. So, if you’re hoping for full coverage for employment practices, you may choose to add this to your policy.  

 

Other covers in the management liability portfolio are:

How much employment practices liability insurance do I need for my business?


The amount of employment practices liability cover you’ll need for your organisation could depend on your industry and the nature of your business. It may also depend on your overall number of employees.  

The size of your organisation can also be significant. For example, a large charity or company with many employees could potentially face multiple employee claims. You may choose to set higher indemnity limits if this is the case for your organisation.

At Hiscox, we can cover you for employment practices liability cover from £100,000 to £10 million. We work to tailor your policy to your circumstances. 

What does employment practices liability insurance cover?


Hiscox employment practices liability insurance can help cover your business, directors, board members, trustees and employees for claims and investigations for:

We can also help pay for:

  • Legal representation costs in relation to other official examinations, inquiries and investigations into you
  • Losses arising from any injunction brought by the Equalities and Human Rights Commission.

Please refer to the policy documents for the full details of inclusions and exclusions of this cover. Policy documents are available when purchasing online. You can also contact our customer services team for more information. 

What does employment practices liability insurance not cover?


Hiscox employment practices liability insurance does not cover claims, losses or investigations arising from:

  • Fraudulent or dishonest acts committed or condoned by any insured party
  • Membership or non-membership of any trade union, other than retaliation
  • Death or any bodily or mental injury suffered by anyone, other than emotional distress
  • Responsibility, duty or obligation imposed by law relating to health and safety, social security, unemployment, retirement or disability benefits, other than retaliation
  • Failure to pay amounts you are contracted to pay employees, including salaries.

Please refer to the policy documents for the full details of inclusions and exclusions of this cover. Policy documents are available when purchasing online. You can also contact our customer services team for more information. 

Employment practices liability insurance: FAQs


What’s the difference between employers' liability insurance and employment practices liability?

Both employers’ liability insurance and employment practices liability insurance deal with employee risks. However, the types of claims they cover you for differ.  

Employment practices insurance covers you for employment contracts, law and the handling of employees. Meanwhile, employers’ liability cover can help with claims of employee illness or injury. The latter is also usually required by law (external link) for anyone with employees in the UK.  

How is employment practices liability different to professional indemnity cover?

These two covers are designed to protect different types of claim. Employment practices liability insurance deals with claims from employees – prospective, current and past, accusing you of breaking employment law. Meanwhile, professional indemnity insurance (PI) can help with claims brought by your clients and other external parties alleging that your business has made a mistake, been negligent or offered poor advice to clients. 

Is employment practices liability cover available for both for-profit and not-for-profit organisations?

Yes, employment practices liability cover is available for both for-profit and not-for-profit organisations. The policy wording is the same, whether you’re a limited company or a charity.

If I have corporate legal liability or professional and legal liability insurance, do I still need employment practices liability?

You do not have cover for issues relating to the handling of employees with either corporate legal liability or professional and legal liability insurance. So, if you want cover for the organisation for claims from your employees relating to employment law and contractual issues, you may choose to also take out employment practices liability insurance.

How much does employment practices liability insurance cost?

Business insurance costs start at £8.40* per month with Hiscox. The exact cost of employment practices liability insurance depends on how much cover you buy.  

Call us on 0808 2736 570 to get a quote. Lines open Mon-Fri 9am–5pm.

* Figures based on an average of all business insurance policies sold to at least 10% of our customer base between January 2023 and January 2024 

How can I pay for an employment practices liability insurance policy? 

With Hiscox, you can pay for employment practices liability insurance via:  

  • Debit card  
  • Monthly or annual direct debit

If you need to change your policy, we don’t charge admin fees.