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The
Need

In today's increasingly litigious business
environment, employing staff is inherent with legal exposures and employers
need cover against allegations of unfair labour practices. According to the
Labour Relations Act, employers can be taken to the CCMA, Bargaining Council or
Labour Court for various labour practices. Frighteningly, courts may award as
much as 24 months’ salary to the aggrieved employee.

Profit companies (public and private) and
non-profit companies are therefore all at risk of being sued by current, past
and potential employees, and even the most efficient HR departments may fall
victim to inconsistent decision making at the dispute resolution forums. Defending a wrongful termination or discrimination claim whether innocent or
guilty, or even if the claim is groundless or frivolous can be expensive.
The potential exposure for a money damages award threatens a company's
financial resources and its reputation can also be called into question. The reality is: any company that has employees needs cover.

The
Solution

In response to the escalation in
employment-related litigation and the inherent financial risk to businesses,
Camargue’s Employment Practices Liability Insurance (EPL) provides
comprehensive coverage for employment-related claims. Camargue’s approach to
EPL is not only to provide an insurance safety net against labour disputes, but
also to provide clients with tools that can both simplify the labour arena, as
well as minimise the risks that South African employers face.

Statistically the risk of CCMA action is twice
as high as the possibility of a road accident and the EPL premium is
substantially less than that of a motor fleet policy.  A business owner
needs to be protected from meritless claims brought by disgruntled employees
and EPL coverage can serve as a last line of defence.

The Cover

Insurance protection for employers covering:

  • Legal fees
  • Damages
  • Awards
  • Settlements

Following an allegation of;

  • Unfair dismissal
  • Sexual harassment
  • Discrimination
  • Failure to employ

Brought about at;

  • The CCMA
  • Bargaining Council
  • Labour Court
  • Arbitration Proceeding 

Employers who have EPLI cover under Directors
and Officers (D&O) policies should be warned that D&O policies
generally cover directors and not the company. Virtually all labour cases are
brought against the company. EPL cover under a D&O policy may also be more
restrictive. 

Risk
Management Services

Camargue’s unique M³ approach
to insurance is geared towards managing, mitigating and migrating critical
business risks – an outcome achieved through the provision of value-added risk
benefits to policyholders. Notwithstanding the coverage provided in terms of
the policy, the additional risk management benefits further enhance the
Camargue product offering and go beyond simple insurance. The overall
result is a well-rounded and complete solution to the risks faced in a
commercial environment. 

Risk Management Services included in the Policy cover:
   

  • All policyholders become members of an employer’s organisation, facilitating rights to representation at the CCMA
  • Access to labour law advice
  • Policyholders receive subsidised chairing of disciplinary hearings and other industrial relation matters
  • Cyber Vulnerability Scan (CVS) - A vulnerability scan is an inspection of the potential weaknesses in the security of a computer network. The CVS only requires the details of your externally facing internet protocol (“IP”) addresses, in order to examine for known vulnerabilities. Therefore it sees only what an outside intruder would see (like your locks, alarm and motion detectors) and tests the perimeter security – with no work required by you. Download our CVS Brochure here.

Important Documents:

Important Notice:

Please save the fillable PDF Proposal Form to your desktop before inserting information. If the proposal form is not saved accordingly, some information may be lost.

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