Tell us about your company and your role?
Custodian is an insurance provider that focuses exclusively on the needs of SME businesses. We were formed almost 5 years ago and as the founder and owner I am pleased to have seen our business clients go from zero to over seven hundred.
We are a little different because as well as having access to the insurance market we have some exciting, exclusive and comprehensive insurance products that you cannot get anywhere else.
Security is something that is easily taken for granted when its there but when lost it can affect everything. So we aim to be the insulation against that.
What is employment dispute insurance?
It really does what it says on the packet. If you have an unfortunate situation where an employee brings a tribunal claim against an employer because they feel they have not been treated fairly then this is where the employment insurance comes in.
The employment insurance will cover the cost of defending the claim against the employee as well as any subsequent award. The allegation against the employer may or may not be erroneous but still needs to be defended. Our product is unlike many in that if there is a claim, it will be defended. Some policies have a caveat whereby they will only defend a claim IF it is deemed to have more than 50% chance of success! Unfortunately this is a clause over which some of our clients have stumbled across to their detriment before moving over to our offering.
Do many employers know about it?
No, not really. It is to some extent deemed to be a risk that is not insurable particularly so because it covers allegations of discrimination, harassment and so on. Some businesses outsourcing their HR to a third party may actually get this cover via their HR provider. This is a common way we insure our clients also. So it is worth asking your HR provider if they are covered under their insurance.
How much does it cost?
Surprisingly little actually. It depends on a number of factors: size of firm, number of employees, sector, past claims experience and so on. For large firms it could be in the £1000s but for small firms looking for a low limit of cover it need not cost more than 300-400 per annum.