Many of our competitors provide indemnity cover for legal expenses and/or awards at Employment Tribunals as an automatic, integral part of their package. This forms a large part of the total cost. We provide the same ongoing support service (and we can even arrange insurance cover if required) but we refuse to include it as a condition of sale based on ‘The Fear Factor’. Also, most companies already have legal expenses cover within their existing commercial combined insurance or through membership of a trade association, therefore duplication can occur (something that is not normally pointed out by our competitors!).

Contrary to popular belief Employment Tribunal judgements, Employment Law and Health & Safety legislation are not weighted in favour of the employee. Implementing sound Employment Contracts and Policy documentation, following certain procedures and entering into a spirit of mediation with staff will solve the vast majority of issues (this is advice as provided by the Chairman of ACAS).  This route is much less expensive than purchasing a solution that includes insurance cover.  Our core range of products & services minimize the risk of tribunal awards by ensuring that you reach the point that the law, and your business, requires. We have hundreds of clients and experience only a handful of tribunal claims each year.

We are able to protect against and avoid Tribunal cases often without the need or justification for additional insurance. It is therefore our belief that insurance indemnities represent an excessive and unneeded cost in many cases.

We do recognise however that there may be some occasions where a business requires the services of a dedicated Barrister. For example, if your company has a history of tribunal problems or if you are defending a high risk, high value award case such as a HSE Prosecution or a Racial or Sexual Discrimination claim.

These types of cases are very rare, and it is more cost effective for most businesses to acquire these specialist legal services as & when they are actually needed.

Therefore, we will assist our clients with the following services as & when you feel they are required:

• Purchasing insurance cover for legal costs and/or awards incurred at Employment Tribunals
• Gaining defence representation for Employment Tribunals and/or HSE Prosecutions

Points to bear in mind when considering whether to purchase this type of insurance within our retained services are as follows:

• Draw a parallel with other business insurance decisions. How much do HSE prosecutions, Tribunal awards, incurred fees and associated resources actually cost your business? Does the cost of the indemnity represent a saving on this? Do not fall into the trap of paying over the odds for ‘peace of mind’.
• Always remember that you are entering into an insurance agreement, and as with any insurer, expect them ‘wriggle’ when it comes to a claim. For example, it is a condition of most indemnities that you contact them before making any staff disciplinary decisions. This essentially places your business in a straightjacket and can be highly unpractical to manage.
• It is always worth asking the question: “How many indemnity claims have you turned down or only part covered in the last year?”
• Check the small print! Does it cover both legal costs and awards? Understand which types of awards and costs are covered by the indemnity. For example, many do not cover the high value Employment Tribunal awards such as Race Discrimination or Sexual Harassment, and you cannot insure or indemnify against HSE Prosecution judgements / fines as this falls under criminal law. 

If at this stage you decide that having an indemnity in place makes commercial sense for your business we recommend going to your own Professional / Employers Liability insurer first. Due to the competitive nature of the insurance industry this is often your cheapest route. We have clients who have gained 50k legal costs cover for as little as £50 (per year) on top of their existing premium. If you are a member of a general business or industry specific association (FPB, Chamber of Commerce etc), check to see if an legal expenses and/or awards cover is included as part of your membership fee.