Many firms do not know about Employment Practices Liability. Firms should learn about this type of policy and how it can protect the firm from the unexpected. A law firm can be at risk of an employment claim as soon as they interview a prospective employee. If you choose not to hire an interviewee, that individual could allege discrimination. Here are some tips regarding employment practices liability to lower your firm's risk.
- Discuss potential exposure with your agent.
- Develop an employee handbook detailing policies and procedures.
- Create a job description for each position.
- Conduct performance reviews of employees regularly.
- Develop a screening procedure for applicants.
- Conduct background checks on potential candidates.
- Institute and enforce a zero-tolerance policy regarding discrimination, substance abuse, and any form of harassment.
- Create a record-keeping system to document employee issues.
Small businesses are sued every day. Per the EEOC, employee charges are rising, and the average is nearly 250 per day. Can you afford to defend yourself? Most EPL claims settle early, but the average cost to defend even nominal claims is $10,000. The fees increase if the case should proceed to court.
Check out our website for more information on Employment Practices Liability. Remember to speak with your firm’s insurance agent. If you don’t have an agent you are working with, please contact someone from our team anytime. You can reach us via email at info@advocapinsurance.com.
Photo Credit: yurolaitsalbert, 123rf.com
