SME Bosses Risk Legal Action Over 'Office Antics'

Swearing, Sexual Innuendo and Shouting Rife in UK Workplaces

LONDON, November 30 - SME bosses could be leaving themselves open to legal action by being
unaware of the level of sexism, swearing and shouting in the workplace,
according to a new study(*) by specialist business insurer Hiscox. At the
same time, the study found seven in ten (70%) UK workers claim that bad
behaviour is rife in their place of work - admitting that the regular
occurrence of racist jokes, arguments and bullying could offend colleagues.

The study separately questioned UK SME bosses and UK workers about
behaviour in the workplace. Comparing the responses revealed a considerable
gap in attitudes between bosses and employees towards 'office antics'.

SME bosses (70%) say they are 'unconcerned' about the threat of legal
action, suggesting they are unaware of potential pitfalls. Even in today's
politically correct society, half (50%) find it acceptable to display 'sexy
celebrity' calendars or rate the relative attractiveness of colleagues (49%),
which may potentially cause offence. This is despite more than half (55%) of
those workers surveyed claiming they would consider legal action if office
behaviour crossed the line.

In fact, almost nine in ten (87%) SME bosses say staff need to be 'grown
up' over office antics, with eight in ten (82%) believing there is nothing
wrong with office banter and two in five (42%) saying it is not their role to
regulate it. Half of UK employees (51%) disagree and believe their boss
should do more to reign in unacceptable behaviour.

With the Christmas party season approaching, employers should be
especially aware of the fact that 'banter' can easily cross the line to
harassment. Over half (58%) of the UK workers surveyed expect colleagues to
get drunk and misbehave at their festive bash, and two thirds (66%) think
conduct is worse if parties are held in the office - as many companies are
likely to do this year to cut costs.

Questionable conduct seen regularly in UK workplaces includes:

    1) Use of nicknames for colleagues (61%)
    2) Swearing (59%)
    3) Use of pet names such as 'love', 'babe' and 'hon' (47%)
    4) Hugging (42%)
    5) Banter of a sexual nature (35%)
    6) Arguments/shouting (33%)
    7) Jokes of a religious, racial or sexual nature (28%)
     Discussions about most/least attractive colleagues (16%)
    9) Bullying (15%)

Callum Taylor, small business expert at Hiscox, comments: "In the modern
workplace one employee's banter can easily turn into another employee's
lawsuit. With 70% of employees citing behaviour in the workplace as often
offensive, our research highlights an area of workplace culture that SME
bosses must be more aware of in order to avoid unexpected legal action.

"This is a year round issue but one that will become particularly
relevant in the office Christmas party season, particularly with many
companies opting to cut costs and have their celebrations in the office.
Having in place a clear code of office conduct and ensuring that behaviour
falls within acceptable boundaries could help prevent a damaging and
expensive legal action."

For further information about Hiscox, please visit
www.hiscox.co.uk

Notes to editors

(*) Omnibus research commissioned by Hiscox was undertaken by Redshift
among 248 UK SME bosses and 1000 UK employees between 4th and 13th November
2009.

About Hiscox

Hiscox, the international specialist insurer, is headquartered in Bermuda
and listed on the London Stock Exchange (LSE:HSX). There are three main
underwriting parts of the Group - Hiscox London Market, Hiscox UK and Europe
and Hiscox International. Hiscox London Market underwrites internationally
traded business in the London Market - generally large or complex business
which needs to be shared with other insurers or needs the international
licences of Lloyd's. Hiscox UK and Hiscox Europe offer a range of specialist
insurance for professionals and business customers, as well as high net worth
individuals. Hiscox International includes operations in Bermuda, Guernsey
and USA. Hiscox Insurance Company Limited, Hiscox Underwriting Ltd, Hiscox
Europe Underwriting Ltd and Hiscox Syndicates Limited are authorised and
regulated by the Financial Services Authority.

For further information, visit www.hiscox.com.

For further information please contact: Lexis Public Relations, Ruth
Barley, Senior Client Consultant, +44(0)20-7908-6451 rbarley@lexispr.com

For further information please contact: Lexis Public Relations, Ruth Barley, Senior Client Consultant, +44(0)20-7908-6451, rbarley at lexispr.com; Hiscox Ltd/ Abi Clark/ Group, Communications/+44 (0)20 7448 6470/ Abi.clark at hiscox.com