28 Jan Business Insurance and Employment Tribunal Costs

Employer’s liability insurance is a legal requirement for almost all employers, even if you only have one member of staff.

This type of business insurance covers employers for claims made against them by employees who have suffered illness or injury during the course of their employment. It protects you, as a business, and your employees.

Some business owners may think their employer’s liability insurance covers other types of claim made against them, such as an employment law claim, but it doesn’t.

The cost of an employment tribunal

An employee may make an employment claim against a business for a number of reasons; for example the claim could be in in respect of discrimination, dismissal and/or pay.

Employers could be responsible for various costs and compensation if the employment claim made against them is successful and they may even be ordered to pay the employee’s costs if the claim is upheld.

In most employment tribunal claims it will be necessary to instruct a solicitor to assist in defending the claim and legal costs can soon mount up, sometimes running into tens of thousands of pounds for more complex cases. Plus, if the tribunal awards compensation to the employee, this could be a business-threatening amount that will need to be paid on top of the legal costs.

Employment matters business insurance

You can add employment tribunal insurance to your business insurance package to protect you from the costly effects of an employment tribunal claim.

Similar to legal protection cover which you add to a car insurance product, employment matters insurance can cover the costs involved in defending an employment tribunal claim and also pay the compensation award.

While sole traders and many SMEs are unlikely to need this type of insurance, it could be one to consider as your business expands. Being taken to an employment tribunal can be a nerve wracking situation and could leave you extremely out of pocket.

Making sure your business insurance package is everything you need

Talk to Tredstone Risks today about building the package of business cover that meets your needs. Whether you run a guesthouse, pet shop, a removal firm, or any other type of small business, we can help you understand the cover that is most appropriate for your business.

Get a quote today.