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.
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.
Insurance protection for employers covering:
Following an allegation of;
Brought about at;
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
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
Risk Management Services included in the
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