After repeated attempts to get an employee to ‘get with the program’ and follow company procedures, you realize that it’s just not going to happen. You’re facing a decision: do you keep them and risk further loss of productivity and revenue or do you have grounds to fire them? That decision carries its own risks…with 37% of businesses in the US being sued each year by employees, sometimes opting for mediocrity in the workplace doesn’t seem that bad.
This is the sort of Human Resources and Business Management nightmare that many of us face. Navigating those hiring and firing practices that are a necessary part of business can be tricky. Knowing you’re covered if you step in the wrong direction? Invaluable. For your business hiring and firing practices and the legal minefield navigation that can come with them, we recommend Employment Practices Liability Insurance (EPLI).

The Basics of Good Employment Practices

  • Have clear policies that are applied consistently to each employee. Such policies must directly relate to their job.
  • Have access to legal counsel that has expertise in this special area of the law.
  • Document essential job functions and establish measurable standards for each position.
  • Have and use regular performance reviews. Apply the standards equally to each employee.

The best defense against employment practice claims is to know the law in your state and then have policies and procedures that meet or exceed its legal standards.

Do you know what type of decisions could trigger a claim?

Sometimes, it’s not even clear if it is even legal to terminate? The answer is never that simple. A business’ action may depend upon circumstances such as whether an employee’s duties involve driving a company vehicle, or directly involves customers and if the company can prove that such behavior fails to meet the applicable job standards.

Policies and premiums for this type of coverage vary tremendously among insurers, depending on what’s offered and your desired level of coverage. Some of the insurance companies we work with offer EPLI coverage as well as assistance in writing policy and procedure manuals and other ways to reduce the potential for claims involving sexual harassment, wrongful termination or discrimination. Keep in mind, that not all of these EPLI policies are written the same; it’s important to work with an agent that understands your situation and employment practices.

When you’re ready to discuss your Employment Practices Liability Insurance, contact Penny Insurance Agency today. We are ready to help.