Changes to insurance will help protect business owners

Business owners can now pursue claims against former employees through specialist pursuit insurance.

The provision of pursuit cover will help to fund business owners who need to take legal action against past employees who breach their contract once they have left the business.

Normally if an employee leaves a company, contract restrictions can help to prevent the employee from working at a competing firm, taking company information and approaching former customers.

If the employee breaches the agreement, court proceedings can be issued but businesses have to fund the expense of taking ex-employees to court, which has put off many business owners pursuing genuine cases.

Now, specialist pursuit insurance will cover the associated legal costs, allowing businesses to enforce contracts and prevent unscrupulous ex employees hurting the business

Michael Shroot, Partner and Head of Commercial at Woodcocks Haworth and Nuttall, welcomed the new cover.   He said: “We have seen many cases where an ex-employee has taken confidential customer databases, photocopied files, approached customers and even staff with the aim of benefiting their new employer. Certain contract clauses are in place to protect businesses from departing employees damaging the business and it is important business owners enforce these.

“Many employers aren’t yet aware of pursuit insurance. The new cover gives business owners the confidence to take contract infringements to court limiting expense and will deter employees from falling foul.

“Employment legislation is already a complex area of law and with major changes on the horizon such as TUPE legislation updates, amends to flexible working and auto enrolment provisions, it is important employees are aware of what is available and how they can protect themselves.

To speak to the experts, contact Michael Shroot on 0161 761 8087 or email