Markel International and Miller Insurance Services Limited (Miller) today announced 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 also provide ongoing support via a dedicated telephone helpline. 

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.

In answer to the increasing litigious culture and in recognition of the enormous risks posed, insurers Markel International and brokers Miller have launched an Employment Practices Liability (EPL) product. The new policy provides financial protection to cover costs incurred during employment disputes 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.

This product has been specifically designed for the medium sized entity and comes as part of a package that includes:
· 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;
· Updates, circulars, newsletters and client briefings to keep clients informed of the latest developments in employment law.

David Walters, Director – Professional Risks at Miller commented: “Traditionally directors’ & officers’ liability insurance has given directors of companies some protection against employment related claims.  However, 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, underwritten by Markel International and supported by Reynolds Porter Chamberlain, is unique, and offers an 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. There is no sign that the flood of employment legislation which has been steadily increasing over the last few years will abate, and British businesses have to recognise the trend and obtain adequate protection for these ever more varied types of risk."

Ends
For further information:
Derah McCall     Rose Liendl / Charlotte Evans
Markel International    Miller
+44 (0) 20 7953 6732    +44 (0) 20 7031 2453 / 2305

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 2004 of $ 746 million. It has five operating divisions writing business either through Markel Syndicate 3000 or Markel International Insurance Company Limited.

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 .