Social Litigation Liability Insurance

Protect yourself from the risks and costs associated with labor disputes.

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What are the risks ?

Employers are subject to numerous obligations towards employees and individuals under their authority (temporary workers, interns, etc.) in accordance with labor regulations. These obligations include ensuring the health and safety of workers, respecting privacy, adhering to the principle of non-discrimination, executing the employment contract in good faith, and complying with both substantive and formal rules in the event of contract termination, among others.

In the event of a breach of these obligations, whether actual or alleged, companies may face civil and/or criminal liability and be required to bear significant costs (lawyers' fees, compensation for damages, settlement payments, communications consultant fees, etc.).

The company may incur civil liability in the event of a breach of labor regulations:

  • Towards a job applicant during the recruitment process (e.g., discriminatory hiring practices).
  • During the course of the employment relationship (e.g., unjustified denial of promotion, discrimination, moral or sexual harassment, unjustified disciplinary action, violation of privacy, etc.).
  • Upon termination of the employment relationship (e.g., dismissal without valid cause, irregular or unlawful termination, etc.).

The company may also be held civilly liable towards third parties (clients, suppliers, partners, etc.) in cases of discrimination or harassment committed by someone for whom it is responsible.

The company may also face criminal liability when a violation of labor law regulations is subject to criminal sanctions (particularly in cases of breaches of hygiene and safety rules, etc.).

A social dispute can tarnish the company’s image, especially with the rise of new technologies and social media, and may necessitate the implementation of a communication strategy by a public relations professional to protect the company’s reputation.

The "SOCIAL LITIGATION LIABILITY" or "EMPLOYER" insurance protects the company when its liability is called into question due to a social violation committed by the company in its capacity as employer, or by its directors or employees for whom the company is responsible.

The "SOCIAL LITIGATION LIABILITY" or "EMPLOYER" insurance protects the company when its liability is invoked due to a social violation committed by the company in its role as employer, or by its executives or employees for whom the company is responsible.

What are the coverages?

Main Coverage

  • Financial consequences of any claim (amicable or judicial) against an insured party questioning their civil liability due to a social violation.
  • Damages
  • Defense costs
  • Settlement compensation, subject to prior approval by the insurer
  • Defense costs in the context of an investigation and/or criminal prosecution against an insured party due to a social violation
  • Defense costs in the context of an investigation and/or prosecution by an administrative authority against an insured party due to a social violation

Main Coverage

  • Financial consequences of any claim (amicable or judicial) filed by a third party due to discrimination or harassment committed against them by a company executive or employee, or by a subsidiary
  • Costs related to reputational and e-reputation damage
  • Psychological support costs
  • Mediation costs
Discussions sur des contrats

Our clients

  • The company and its subsidiaries
  • The leaders (whether salaried or not) and employees of the company and its subsidiaries acting within the scope of their duties.
  • The permanent physical representative of the company or a subsidiary.
  • In a shareholding or any natural person exercising a managerial function within a shareholding at the request of the company or a subsidiary.

Our sectors

Why choose Howden?

  • Understanding your challenges: precise knowledge of your business sector and the risks to which companies are exposed
  • Global approach: An approach integrating advice, investment, management, and support in case of claims, from all angles.
  • Expertise: a team of specialists in Employee Liability integrated into our customers' service teams at all times
  • Responsiveness & Availability:  Teams who are experts in their respective fields. The individual experience of each is at your disposal to manage your exposures and optimise your insurance cover. 
  • Support at all stages of your development: From the start through your international development, all the way to going public on a French or foreign market.
  • Adaptation & Network: local expertise through our regional offices and access to our integrated international Howden One network present in over 100 countries
  • Defense of your interests: a commitment to short settlement times, a solid legal approach to guarantee the protection of your rights and interests, a network of specialised claims managers in France and abroad

Examples of claims

Facts: An employee initially recruited as an analyst by a company specialising in engineering and data science was appointed Head of Business Analytics. The company was merged into a multinational engineering and IT services company. A new organisation was put in place and the Head of Business Analytics complained that several of his responsibilities were being withdrawn and that his decisions were being systematically monitored by his new management. He was placed on sick leave, which lasted for almost a year. His employer notified him of his dismissal for long-term absence, disorganisation of the company and the need to replace him permanently. The Business Analytics Manager contested his dismissal and brought the matter before the Labour Court, which ordered the employer to pay damages for invalid dismissal and non-pecuniary loss, as well as a sum under article 700 of the Code of Civil Procedure.

Items covered :

  • Defence costs incurred by the company in the dispute with the employee.
  • Amount of damages paid to the employee for invalid dismissal
  • Amount of damages paid to the employee for moral prejudice
  • Amount awarded under Article 700 of the Code of Civil Procedure

Facts: An employee initially recruited as an account manager by a portfolio management company was promoted to the position of Investment Director. A year after taking up the post, his employer told him during his annual interview that he was not meeting the investment targets and that the lack of development in his sector was causing problems. A few months later, the employer decided to dismiss him for insufficient activity (lack of investment in certain funds, lack of projects invested in or presented to the investment committee, insufficient prospecting). The Investment Director contested his dismissal, arguing that the real reason for his dismissal was economic. According to him, his dismissal was linked to the slowdown in business (fall in fundraising, increased complexity of equity investments) and to the announced closure of the office under his responsibility.

Items covered :

  • Defence costs incurred by the company in the dispute with the employee
  • Amount of damages paid to the employee in execution of the settlement agreement reached between the employer and the employee, with the insurer's prior agreement.

Contact

Photo of Didier Seigneur

Didier Seigneur

Director of Financial Risks Department
Photo of Didier Seigneur

Didier Seigneur

Director of Financial Risks Department

With over two years' experience at Gerling America Insurance CY in New York, specializing in Liability underwriting, Didier later joined Aon Mergers & Acquisitions Paris as Deputy Director, driving the growth of Insurance Warranty and Tax Opinion products. Progressing to AIG Europe Limited France in 2002, he assumed various management roles in Financial Risk guarantees. In 2010, he took the helm as Director of AIG France's Financial Risks division, extending his leadership to Belgium, Luxembourg, and the Netherlands in 2014.

In 2014, he ventured into entrepreneurship and played a key role in acquiring CRF Assurances. Seven exciting years later, Didier now thrives as Deputy General Manager of CRF Assurances and Director of Financial Lines at Howden France.

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