Tide of new employment legislation causes Boris Johnson to experience "an overwhelming sense of deep gloom"

Markel International and Miller Insurance Services Limited yesterday announced to an audience of over 100, the launch of an innovative insurance product designed to cover employers against the rising cost of employment litigation. The cover is aimed at medium-sized businesses and will uniquely provide ongoing support via a dedicated telephone helpline. Boris Johnson was on hand to present his views of the UK's increasingly litigious culture.
Left to right:  David Walters (Miller), Cath Thorpe (Reynolds Porter Chamberlain), Francesca Bristo (Markel), Boris Johnson (Shadow Minister for Education)

 

 

 

Over the past five years, the number and value of cases brought by employees against their employers has rocketed. This trend is due to growing legislation to protect employees, the increased awareness of employment issues and rights, and the publicity surrounding successful claims. The effect of these actions on medium-sized companies can be catastrophic. The need for appropriate cover to help businesses deal with these complex and potentially damaging risks has become more important than ever before.

At the launch briefing, Boris Johnson, Shadow Minister for Education, journalist, columnist and Member of Parliament for Henley-on-Thames gave his views on the role of the politician in stemming the ever increasing tide of regulation by referring to his unlikely political hero, the mayor in the novel Jaws. Boris said: "The real hero of Jaws is the mayor, a wonderful politician. A gigantic fish is eating all your constituents, and he decides to keep the beach open. Okay, in that instance he was actually wrong, but in principle, we need more politicians like the mayor - we are often the only obstacle against all the nonsense. Which is really a massive conspiracy against the tax payer".

Markel's new policy provides financial protection to cover costs incurred during employment disputes or as a result of official investigations and inquiries. The product offers a broad definition of Wrongful Employment Acts and affords protection to the company, the employees, the directors (including non-executives) and officers. Punitive and exemplary damages are also covered by this policy and cover extends to the insured's world-wide operations.

Key Features:

  • An optional audit - which if completed satisfactorily may result in premium reductions and other coverage enhancements;
  • A telephone advice line, particularly valuable to companies with small HR departments. The advice line will be operated by employment law specialists, Reynolds Porter Chamberlain, providing step-by-step assistance to guide employers through specific employment law challenges;

David Walters, Director - Professional Risks at Miller commented: "As employment legislation gets increasingly complex and society becomes more litigious, the financial pressure on companies, in particular small to medium sized ones, means there is an urgent need for them to protect themselves with stand alone employment practices liability insurance. This product is bespoke, and offers a cost effective solution."

Francesca Bristo, Head of Markel's Directors' and Officers' and Employment Practices Liability team, said: "In the last twelve months there have been almost 90,000 employment tribunal applications issued and nearly 40,000 claims for unfair dismissal. However, the CBI estimates that less than one in ten businesses are insured against this type of exposure. British businesses have to recognise the trend and obtain adequate protection for these ever more varied types of risk."

For further information:

Rose Liendl or Charlotte Evans

Please click here for a pdf version of this press release.

Notes to editors:

1. Markel International Limited is a specialty property and casualty insurer. Based in London and comprising the international operations of Markel Corporation, it wrote gross premiums in 2005 of $641 million. It has five operating divisions writing business either through Markel Syndicate 3000 or through Markel International Insurance Company Limited. Markel Corporation is a US listed business, capitalised at around $3.5 billion, which in 2005 wrote gross premiums of $2.4 billion.

2. Miller Insurance Services Limited (Miller) is a leading independent specialist insurance and reinsurance broker, operating in the international markets and at Lloyd's. Miller offers a wide range or professional and executive liabilities solutions to a broad range of businesses. The specialist insurance services include adverse cost litigation, directors' and officers' liability, intellectual property asset protection, and professional indemnity / errors and omissions. Founded in 1902, Miller now employs over 500 people and handles an annual premium in excess of US$1.5 billion. For more information, please visit www.miller-insurance.com/professional .