Is failure to promote covered? (Advanced answer)

  • Yes, if the employee alleges that the Insured failed to promote them because of unfair discrimination, then this would be covered.
  • However the policy only covers punitive damages where they are awarded for an unfair dismissal. This means that if the CCMA, for example, were to draw a distinction between that component of its award which was for punitive damages, as opposed to compensation, then this policy would only pay the compensation portion.
  • It is uncommon for the CCMA, or other arbitrating body to draw such a distinction. For this reason, in most cases, the policy will pay the whole damages award.
Subject: 
Employment Practices Liability