Discrimination, harassment, failure to promote, and wrongful termination are all very common forms of employee claims/allegations within the work force that may expose any business to financial collapse if the allegations are founded. The best way to protect yourself, your assets, and business is to know some ways to reduce your risk of employee claims at your Alabama business.
Will Your Current Business Insurance Leave Any Gaps?
Having your business exposed on public media as a result of allegations by an employee is a business owner’s nightmare and even if the allegations are dropped, the news has already been aired/voiced and the reputation endangered. Ask yourself whether your current business insurance will protect you if you are faced with an employee claim or will you be left in a hole because of an insurance gap?
Keep in mind that by owning your business, you are always subject to employee complaints from past, present or even potential personnel. Imagine that one of your current staff interviews a potential job candidate and asks her several questions regarding marital status, age, and religion. When that particular interviewee is denied the job opportunity, she proceeds to file a lawsuit citing “discrimination.” Will your business have the right type of insurance coverage in place to be protected in this type of situation?
The Benefits of EPL (Employment Practices Liability)
If you aren’t aware of the many benefits of Employment Practices Liability coverage, you may be exposing your business and assets to a financial demise. Your Alabama commercial policy will protect your business against many different exposures, but are employee claims one of them? An EPL endorsement is designed to protect yourself and business against employee claims/allegations of discrimination, harassment, and wrongful termination, to name a few, and will ensure protection if you are faced with a lawsuit.
Implement Basic Measures Within Your Business
There are measures you can implement within your business that clearly communicates with each and every employee how employee claims are handled as well as consequences. Below are some helpful measures you can take to protect your business:
- Ensure your local Alabama independent insurance agent is aware of your business and the characteristic types of risks you may encounter due to the nature of your business.
- Distribute a handbook to each employee that clearly outlines circumstances of discrimination, harassment, hiring, and firing, along with any consequences that shall be implemented as a result.
- Investigate ANY and ALL claims/allegations from employees, refer to the current policies, confer with human resources, and document findings.
- Perform routine performance evaluations on each employee; documenting performance, attendance, and any “acknowledged” situations that have arisen.
Keep Your Alabama Independent Agent Informed
Some of these types of employee claims are difficult to discuss due to their sensitive nature, but Burkett & Associates Insurance Agency understands the importance of making sure your current Alabama insurance coverage includes EPL protection. If you are unsure whether your business policy includes EPL, you should immediately contact us at 256-704-7400. Always keep us informed of any changes within your business so that as your business changes, so does your insurance protection, to meet all of your Alabama business needs.
