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Sexual harassment inquiry set to affect insurance

Australia’s Sex Discrimination Commissioner Kate Jenkins will release recommendations this year that will have implications for employment practices liability (EPL) and directors’ and officers’ (D&O) cover.

Ms Jenkins is completing a national inquiry into sexual harassment in Australian workplaces and says report recommendations will focus on improving education, providing better guidance for employers and strengthening laws.

Insurance was not a focus during recent consultations, but there is “absolutely” a role for the industry in encouraging employers to stop issues occurring in the first place, she told the Australian Professional Indemnity Group (APIG) conference last week.

“I want to incentivise prevention,” she said. “At the moment I think the incentives are to hide sexual harassment.”

Ms Jenkins says the current system isn’t working well, many complainants say they would never have come forward if they had known how they would be treated, and employers fear reputational damage.

APIG President Jeremy Scott-Mackenzie says the report will have implications for the industry and also present opportunities for engaging with clients.

“It is clearly going to affect us right across both EPL and D&O insurance,” he said.

The report is likely to be released in November, with a date still to be finalised.