Employment Practices
Legal Protection Insurance

Frequently Asked Questions

Frequently asked questions for law firms interested in offering Temple's Employment Practices Legal Protection Insurance to their employer clients.

1. How much administration is involved?

   You will be pleased to hear, very little. 

   The scheme provides you with delegated authority, within certain parameters, to quote premiums and issue policies on behalf of Temple without referral to us. We provide a standard insurance certificate for you to issue and you simply enter the basic details about the insured on the certificate.

   View a copy of our policy wording

   The only regular reporting requirement to Temple is the monthly submission of a form, called a “bordereau”, which records the policies that you have issued in any given month.

2. How much will this scheme cost my law firm?         

   Absolutely nothing. We do not charge a signing up or administration fee.           

3. What happens when one of my clients has a claim?

   Upon receipt of an Employment Tribunal Claim you will need to advise us of the claim, supply us with copies of key documents and provide us with a fee estimate. Provided your client has followed your advice, acted reasonably and has good prospects of defending the claim, we will confirm cover and agree a fee limit with you. As the claim progresses you will need to keep us updated as regards key developments, such as changes to prospects of success and details of any settlement proposal. This is normally done by brief emails.

4. What support will I receive from Temple?

   You will definitely not feel alone in running the scheme.  Experienced underwriters, employment solicitors, and underwriting assistants staff our Employment department. All of the team is dedicated to supporting the solicitors we work with. We aim to respond to all correspondence and deal with claims within 5-10 working days.

5. How does the delegated authority scheme work?

   The Coverholder Agreement is a contract between Temple and the firm (the firm becomes the “Coverholder”) and gives the Coverholder delegated authority to offer the insurance that Temple provides to clients, quote premiums and issue insurance policies without referral back to Temple.

   Any interested clients should complete the Proposal and Referral Form. When this form is handed back to the Coverholder, the Coverholder checks through it to see if there are any “referral points” on it, which means that Temple needs to see the form before a quote can be issued to the client (referral points are noted on page 2 of the Coverholder Agreement). If there are no referral points, the Coverholder can quote the insurance premium for the interested client using the rating table on page 3 of the Coverholder Agreement.

6. What is the level of cover provided by the policy?

   The limit of indemnity for each claim is £100,000 and £1,000,000 in the aggregate. Cover includes indemnity for all defence costs in defending an Employment Tribunal claim, awards made by an Employment Tribunal and any settlements post the issue of the ET1 subject to terms and conditions in the Coverholder Agreement and in the Certificate of Insurance.

7. When does a claim begin?

   The claim starts from the date the ET1 has been issued in the Employment Tribunal and after Temple have given consent that the claim is covered.

8. Does the firm have to be FSA registered?

   Yes – but this is straightforward for Law firms. The Coverholder has to declare on their practising certificate with the Law Society that they will be carrying on general insurance mediation activities and through this they will be registered with the FSA as an “Exempt Professional Firm”.

9. Will the firm be in competition with other firms running a similar scheme in the area?

   Temple has over 70 Coverholders running the Employment Practices Insurance scheme and therefore there may be more than one firm offering a scheme backed by insurance from Temple in a particular area. However, all Coverholders have the same premium rates and in our experience, Coverholders who are in the same area, do not find local competition a problem.

10. Is there excess payable on the insurance policy?

    No, normally there is no excess payable by the Insured on the policy. However, sometimes if the insurance premium is very large, the Insured may decide to take an excess on the policy in return for a lower premium. If the Insured wants to do this, there would need to be a referral to Temple via the Coverholder to quote the premium and excess.

11. What happens if the firm gets a “systematic helpline abuser”?

    Although rare, this can happen and that is why Temple recommends that you put in the retainer agreement you have with your client that you reserve the right to make changes if the telephone use is exceptional and/or the assistance goes outside the scope of “telephone advice”. You can then choose whether or not to make an extra charge or make a commercial call not to charge.

    The fact that the package is offered to clients on an annual basis means that Coverholders can review the telephone usage of clients over the preceding year and increase the amount they charge for the helpline if necessary upon renewal.

12. How is the insurance premium paid over to Temple?

    The Coverholder collects this from the Insured and forwards to Temple on a monthly basis. Insureds on cover have to be declared to Temple on a monthly list, referred to in insurance speak as a “bordereau”. This bordereau is the only reporting requirement making the scheme very simple to run.

13. What is not covered by the policy?

    Please see “The Things You Are Not Insured For” part of the Certificate of Insurance.

14. How does the claims process work?

    Once an ET1 has been issued in the Employment Tribunal against the Insured, the Coverholder completes a claim form on behalf of the Insured and sends it, along with all the necessary documentation, to Temple. Temple reviews the claim and subject to various terms and conditions in the Certificate of Insurance and Coverholder Agreement, will agree cover. Temple then agrees that the Coverholder can incur up to a certain amount of fees in running the claim. Once this “ceiling” has been reached, if the Coverholder reverts to us, Temple will review the claim and agree another amount of fees.

    The Coverholder handles the claim, as they would do normally. However, the Coverholder must revert to Temple before any settlements are made or if the prospects of success deteriorate.

15. Is claims work always paid at £150 per hour?

    The £150 per hour figure is what we pay all our Coverholders who run the scheme nationally. This rate cannot be increased in the first year of the scheme. Depending on the amount of premium that a firm brings into Temple, we are open to discussions in the second year and may be willing to negotiate a blended rate for the whole employment team.

16. Can the firm bill Temple for the claims work on an interim basis?

    We prefer to settle the Coverholder’s invoices for their costs at the end of the claim. However, if the claim has been running for a long time and/or costs are increasing quickly, Temple will consider accepting interim bills.

17. What is Temple’s policy on the use of Counsel in handling a claim?

    As employment law experts we would normally expect you to deal with any advocacy. However, if agreed with Temple that you can use Counsel, there is no restriction on which Counsel you can use. There is a limit on counsel’s fees and these are within the normal hourly charging rates with Temple.

18. Will Temple pay for any settlement that is agreed between the parties?

    Temple will pay the commercial settlements if Temple and the Coverholder agree that this is the best way forward.