HSB Canada, a multi-line specialty insurer and part of the global reinsurance giant Munich Re, has introduced a new coverage, Employment Practices Liability Insurance with the aim to help small businesses respond to claims arising from employment-related practices.
The firm has cited external and internal reports which show that 80% of Canadian employees experience harassment at work, with 4 in 10 Canadian small businesses worrying about legal action brought by staff.
The coverage pays for liability and defence costs from claims alleging unlawful employment practices, including discrimination, sexual harassment and wrongful dismissal.
HSB will also provide complimentary services including a legal advice line, providing general counsel on employment and small business issues.
Terry Smith, Vice President, Treaty Client Management, HSB Canada, commented, “Employment-related claims are increasing in prevalence and complexity due to a changing social and legal environment.
“Small businesses are particularly exposed because they typically do not have dedicated human resources or finances to deal with legal issues and payouts that could reach tens if not hundreds of thousands of dollars.”
Additionally, the offering covers not only claims brought by employees but also by any third party, including customers or vendors.
