Employer and Directors Protection
Insure yourself against litigation
When employing staff you take on a major responsibility. You also assume the liability for keeping up to date with the legislation and regulation in the constantly changing area of employment law. Our employment team can advise you in relation to all aspects of employment law. We find the biggest worry for our clients is the unknown costs of litigation should an employee or ex-employee bring a claim against them.
That's not the whole story as directors also take on potential personal liabilities when they are appointed. Our commercial litigation team, as well as dealing with general litigation, also deal with the liablility issues that affect directors, such as directors' disqualifications.
If you are in breach of any of these obligations then either you, or your company, will incur liability – ignorance of the law is no defence!
At Brethertons we have worked closely with financial advisers and have identified a comprehensive Management Liability Insurance product that covers both employment claims and directors and officers' liability – furthermore, you can be guaranteed that Brethertons will be appointed to defend your case.
How we can help
A solution to costly litigation and company payout's in contentious employment situations is for businesses to obtain Management Liability Insurance.
The insurance provides personal cover for individual directors as well as cover for the business (including the defence costs of any Tribunal claims plus any settlements or damages which may be awarded).
The cover is underwritten by Chartis Insurance UK Limited, (formerly AIG Insurance) who are world leaders in the provision of insurance products.
Not only will you receive the protection of one of the leading products on the market, but Brethertons will be appointed as your solicitors to defend you against any potential claims. Therefore, you will have the synergy of working with your own trusted firm of solicitors – not a faceless law firm that does not understand your individual business needs.
Tribunal claims
The Tribunal Service has reported a 20% increase in unfair dismissal and redundancy claims and with compensation reaching six figure sums, employees are becoming more litigious and aware of their rights. Can you afford to get it wrong? Some of the more notable recent awards
include:-
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Sexual discrimination claim £217,961
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Unfair dismissal claim £477,603
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Religious discrimination claim £984,465.
All of the above figures exclude legal costs!
The policy we have identified with a firm of financial advisers gives our clients comprehensive protection, at an affordable price. The policy also covers settlement costs and the costs of any awards at Tribunal (should you not be successful) and covers all aspects of employment law claims.
Corporate and individual director's responsibilities
Businesses and individual directors also have responsibilities in the event of a workplace death of an employee. If you think that such cases would not happen to you then you may wish to think again! April 2009 saw the first director being prosecuted for a Corporate Manslaughter offence, brought under existing health and safety legislation.
It's not just construction industries where accidents happen, a fall in the office and a bang on the head could be just as fatal. It is anticipated
that criminal prosecutions against individuals will increase. Penalties which can be imposed include:-
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Unlimited fines and/or imprisonment
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Remedial orders (to remedy any management failure that led to a death)
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Publicity orders, along with details of the offence, to publicise that the organisation has had a conviction.
As a result of directors not complying with their legal obligations, disqualifications are also increasing. 1,200 directors were disqualified in the year March 2008 to March 2009.
Also, defence costs for both the individual and the business can be significant – are you covered
for these? Protection is vital.
Peace of mind
The policy covers, at an affordable premium, both employment disputes and director and officer liability with the further assurance that Brethertons will be instructed.
