We believe in prevention rather than cure
What you can expect from us:
In the event that you are served with Tribunal papers or you are faced with a Health and Safety prosecution from a current or former employee, you should notify our Legal Services Case Preparation Department for Employment or our Health and Safety Department as soon as possible. Upon such notification, we will see the case through from inception to conclusion.
Employer indemnity guide
Employer indemnity is available to cover certain awards made to current or former employees, who succeed in their claim before an Employment Tribunal. The amount is decided by the Tribunal where it is believed the claimant (employee) should be compensated for matters such as their loss of earnings or unfavourable treatment. It also extends to health and safety and other regulatory prosecutions, as well as covering the employers’ costs of dealing with and/or defending such prosecutions.
Fortunately, businesses can now protect themselves with this type of indemnity insurance. Peninsula (CI) Ltd’s employer indemnity insurance policy, provided through Irwell Insurance Company Limited, is authorised and regulated by the Financial Services Authority (FSA). It has a high upper limit for a single event and for a policy year. As you might expect, once in place, this takes the weight off the shoulders of many employers, because even if the worst happens, they will still have support and cover, subject only to policy conditions and advice guidelines.
Peninsula (CI) Ltd’s employer indemnity insurance will cover most awards (on the basis that advice is followed and policy conditions are met)
- Peninsula (CI) Ltd’s fees for handling a tribunal
- Costs incurred in collective and individual claims
- Basic pay and compensation awards (but not redundancy payments)
- Costs in Health and safety cases
- Awards in unlawful discrimination claims
- Awards in Unfair dismissal cases, unless the employer can demonstrate there were reasonable grounds for dismissal
This final example is now very important. With the default retirement age being scrapped in 2011, employers cannot now use retirement as a reason for dismissal and will have to rely on one of the other potentially fair reasons e.g. capability, conduct etc. Experts believe this could lead to a rise in unlawful dismissal cases, so having the security of indemnity insurance could mean fewer sleepless nights.
Protecting your business
Of course, prevention is always better than cure, and sometimes it won’t be necessary to have to rely on the employer indemnity insurance. In the best case scenario, Peninsula (CI) Ltd’s expert advice on all employment law and health and safety matters will mean that clients never even progress to the tribunal or court stage. For example, our advice and resources cover employment law and working time regulations, effective health and safety management, tax advice and more.
Tribunal Award And Compensation Cover
This cover will pay basic awards (other than redundancy payments) and compensatory awards (subject to the maximum limit) determined by an Employment Tribunal in circumstances of:
(i) Unfair Dismissal
Cover extends to awards (subject to the maximum limit) for findings of unfair dismissal , these being conduct, capability or qualifications, redundancy, retirement, statutory ban (contravention of a duty or restriction imposed under an enactment) and some other substantial reason.
(ii) Unlawful Discrimination
Cover extends to awards (subject to the unfair dismissal maximum limit) for findings of unlawful discrimination on the grounds of race, colour, ethnic or national origin, religion, religious belief/political opinion, sex, marital status, sexual orientation, gender reassignment, disability or age.
In addition, this cover allows funding for any economic settlements reached in such cases, if this is felt to be viable prior to a merits hearing, or to minimise compensation instead of attending a remedies hearing.
Limit on Claims
There is a limit on all claims of £150,000 per insured events (or series of events linked by time or cause) and a maximum of £2,000,000 for all claims in one policy year.
Peninsula (CI) Ltd Business Services are authorised and regulated by the Financial Services Authority (Registration No. 468574)