Category: Social risk · Reviewed by Al Jabbar, Broker · Specialist Risks · Last reviewed 2026-06-10
D&I diversity inclusion insurance describes the UK D&O, EPLI and crisis cover that responds to discrimination, harassment, equal pay and ESG-related claims arising from diversity, equity and inclusion failures.
Category: Social risk Also known as: DEI insurance, Diversity and inclusion insurance, Equality cover Typical UK market form: EPLI primary, D&O investigation cover, crisis management add-on Related concepts: Employment practices liability insurance, Directors and officers insurance, Allegation insurance D&O, Reputational liability insurance
D&I diversity inclusion insurance is the broker term for the insurance responses to claims and investigations arising from a UK organisation’s diversity, equity and inclusion exposure. Substantive cover sits primarily within Employment Practices Liability Insurance (EPLI), which responds to individual employment tribunal claims, with secondary support from D&O for board-level investigations and from crisis management products for reputational fallout.
The exposure has broadened significantly. Historically, EPLI focused on individual discrimination, harassment and unfair dismissal claims. Since the Worker Protection (Amendment of Equality Act 2010) Act 2023 imposed a positive duty on employers to take reasonable steps to prevent sexual harassment, and since regulators including the FCA have signalled a higher bar on culture and conduct, D&I exposure now reaches systemic governance and disclosure issues that may give rise to D&O claims.
The Equality Act 2010 (c. 15) is the foundational statute. It consolidates earlier anti-discrimination legislation and protects nine “protected characteristics”: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. It prohibits direct discrimination, indirect discrimination, harassment and victimisation, and (for sex) requires equal pay for equal work under the equality of terms provisions in Part 5 Chapter 3.
The Worker Protection (Amendment of Equality Act 2010) Act 2023 received Royal Assent on 26 October 2023 and came into force on 26 October 2024. It imposes a positive duty on employers to take “reasonable steps” to prevent sexual harassment of workers in the course of employment. The Equality and Human Rights Commission can enforce the duty and tribunals can uplift compensation by up to 25% where the duty is breached. The EHRC published technical guidance in 2024.
Adjacent obligations include the Gender Pay Gap Information Regulations 2017 (SI 2017/172) requiring employers with 250 or more employees to publish gender pay gap data annually; the Public Interest Disclosure Act 1998 protecting whistleblowers; and the FCA’s diversity and inclusion proposals (Consultation Papers CP23/20 and CP23/21) which are progressing through final-rule stages. UK-listed companies face the FCA Listing Rule LR 9.8.6R targets for board diversity. The Financial Reporting Council Stewardship Code 2020 reinforces investor scrutiny.
EPLI is the primary response. Standard wordings cover defence costs and damages awarded in respect of discrimination, harassment, equal pay, victimisation, unfair dismissal and whistleblowing detriment claims. Most UK wordings (AIG, Chubb, Beazley, Hiscox, CFC, Markel) respond to employment tribunal proceedings; EAT and Court of Appeal appeals; ACAS conciliation; and EHRC investigations. Limits typically range from £250,000 for SMEs to £25m for FTSE 100 employers.
D&O Side A/B/C wordings respond to investigation costs of directors and officers under FCA, EHRC or other regulator enquiries arising from systemic D&I failures, and to civil claims by shareholders alleging breach of Companies Act 2006 s.172 in connection with disclosed D&I commitments. The recent emphasis on board diversity targets has expanded the D&O exposure footprint. Crisis management policies fund PR consultants and specialist counsel where high-profile harassment or discrimination claims attract media attention.
Standard exclusions remove cover for deliberate, dishonest or fraudulent conduct, criminal fines and personal injury where bodily injury exclusions are not carved back. Punitive and exemplary damages cover is jurisdictionally restricted. The injury to feelings element of UK Vento band awards is generally covered. Brokers should examine: (i) prior acts cover where harassment claims may have a long latency; (ii) third-party liability where claimants include customers, suppliers and contractors; and (iii) whether EHRC investigation costs are within the policy trigger.
The UK EPLI market is mature and competitive. Capacity is plentiful but underwriters request detail at renewal: a copy of the gender pay gap report (in-scope employers), confirmation of harassment policy and training programme, complaints log, board-level D&I metrics and any ongoing tribunal proceedings. The Worker Protection Act 2023 reasonable steps duty has prompted more granular questions about preventative measures.
Premium impact varies by sector. Financial services, hospitality, professional services and media attract closer scrutiny because of FCA culture focus or sector-specific exposure history. Premiums for SME employers (under 250 staff) start around £1,500 to £6,000 for £1m to £5m cover; mid-market premiums range £6,000 to £35,000 for £5m to £25m cover. Aggregate D&O policy uplifts for ESG-related D&I investigation cover are typically £2,000 to £15,000.
A UK media company with 320 staff faced a class-style group of seven harassment claims arising from a single senior manager’s conduct over five years. Six claims were settled through ACAS conciliation for combined £640,000. The seventh proceeded to tribunal which found breach of the Worker Protection Act 2023 preventative duty and uplifted the award by 25%. EPLI funded £320,000 of defence and counsel costs, £640,000 of settlement contributions and £180,000 of tribunal damages including the uplift. D&O paid £85,000 for board-level investigation arising from EHRC correspondence. The crisis management extension paid £140,000 for PR and a culture review by an external consultancy.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
Get a quote