New research finds that organisations should be ready for a litany of claims based on COVID-19 mismanagement.
By Debbie Bolla
Organisations are anticipating COVID-related litigations to skyrocket this year, with Gallagher finding that seven in 10 claims management companies already reported receiving claims based on COVID-19. Even further, of those claims management companies that haven’t received claims yet, three-quarters (76%) said they were expecting an increase over the coming months. The research also anticipates that claims will cause a 40% rise in litigation compared to previous years.
What type of claims are employees making? Claims management companies are seeing filings around alleged workplace and premises-related safety violations and negligence during the pandemic. In fact, according to Gallagher, claims management companies are receiving claims related to employees and customers contracting COVID-19 on an organisation’s premise (employees 14% of all claims registered so far/customers 11%); medical negligence (13%); poor working conditions including a lack of suitable PPE (9%); or as a result of delayed treatment for another medical condition (9%).
Organisations are also facing allegations around unfair dismissal and discrimination, with the majority of these claims likely to be as a result of job losses. The study shows 12% of respondents report claims around staff feeling overworked or unsupported, as well as discrimination cases (8%) and unfair dismissals (4%).
The research found that the average claim value submitted by employees is £5,500, which is likely to include compensation for illness and any subsequent losses. This is leading to business concern. According to research by Opinium, over half (52%) of the business leaders are anxious that they will be sued by an employee or client in the future who accuses them of contracting COVID-19 on their premises, leaving them facing costly legal fees.
Editor’s note: Research was conducted by 3Gem.