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Reduce Workplace Lawsuits: Ways to Protect Your Company from Lawsuits

Statistically speaking, a company with 100 employees will be faced with an employment practices related lawsuit once every three years.

While there is no way to guarantee immunity from potential lawsuits, there are some steps that you can take to help reduce your legal liabilities –lowering the chances of a lawsuit.

Lawsuit protection falls under two categories, lawsuit prevention safeguards, as well as risk management solutions that provide protection to a company in case of a potential lawsuit.

Below are some ways that you can help to protect your company from lawsuits.

Be Proactive Against Workplace Discrimination
Discrimination lawsuits make up a huge portion of workplace related lawsuits today. According to some estimates, the number of discrimination lawsuits has increased by more than 2000% in the last twenty years!

Having antidiscrimination policies in place, educating employees on discrimination in the workplace, and being proactive in disciplinary measures towards employees who engage in discriminatory behavior can go a long way towards creating a safe work environment, reducing the chances of a discrimination lawsuit. If a lawsuit is brought against you, being able to prove your company’s antidiscrimination policy and efforts can help tremendously should you need to prove your case in court.

Worker’s Compensation
In the US, an average of two hundred workers are hospitalized every day due to work-related injuries. The risk of a workplace related accident is high –even for what are considered low-risk occupations. With a workers’ compensation insurance policy, you can help to protect your company from a lawsuit. In Texas, the law offers valuable protection to companies that have workers’ compensation for their employees. According to Texas worker’s compensation law, if an injured employee recovers workers’ compensation benefits from their company, they cannot sue their employer for additional compensation –except for exceptional cases. This protection helps companies to drastically reduce the chances of a workplace injury liability related lawsuit.

Protection in Case of a Lawsuit
Employment Practices Liability Insurance (EPLI) provides valuable coverage to employers against workplace related lawsuits.

Even for companies that are not intentionally discriminatory, the risk of a discrimination lawsuit presents a real risk to companies with employees. Even if you never enter into any discriminatory action against an employee, a potential lawsuit could be brought on at any time due to everything from improper conduct by another employee, to an off-color joke told in the break room.

Protecting your company with EPLI is an invaluable liability insurance that can help to protect your company against allegations of discrimination, as well as from claims of wrongful termination, sexual harassment, and failure to employ.

Talk with Texas Energy Insurance to find out more ways that you can protect your company from liability lawsuits. (877) 952-1010