Employers should look at employment practices liability (EPL) cover, given the number of high profile sex discrimination cases to hit the courts in recent weeks.
Royal & SunAlliance (R&SA) EPL manager Mike Bird said applications to the employment Tribunal had risen by more than 60% in the last three years and 25% in the past year alone.
He said unfair dismissal accounted for one third of the 2001 cases.
"Even with the best human resources procedures, claims do arise and the legal cost of defending an employment claim, even an unfounded one, can be substantial," he said.
Bird said EPL cover provided protection against the financial impact of employment-related legal actions.
