There has been a significant rise in lawsuits being filed by employees against their colleagues, their employers and even by former employees over a plethora of reasons. Companies can be at their wits’ end with such lawsuits. It has been seen, statistically, that most state laws and public prosecutors sway the cases way too much in favor of the complainant. If a prima facie case has been established then it could be very hard for any employer or company to prove its innocence.
If you have employees, more than a handful, then you ought to have employment practices liability insurance.
Now, there is only one reason why you would need this type of employment insurance and that is to save you the expenses, charges and compensations. A business can be very badly hit with lawsuits especially with mass scale actions and liability insurance is the only type of employment insurance that can ensure you stay afloat and have peace of mind.
Now, employment insurance covers all possible circumstances or practices of all employees starting from the non executive directors to the pantry staffs. As an employer, you may not be a racist or do not have the slightest inclination to harass anyone, your company may have large displays promoting ideal philosophies, work culture, company policies and all efforts may be into place to maintain a perfectly harmonious and hassle free work ambience. But the entire culture that is established with a lot of hard work can be ruined by a small error on someone’s part. One employee terminating his junior wrongfully, someone making a racial comment or a former employee who is dissatisfied with the benefits, any or many of such factors could lead you to trouble.
Employment insurance can cover you against all such possibilities.