Tips on Avoiding Potential Employment Practices Liability Claims
Employment related insurance claims are on the rise and some insurance experts predict this will be a target area for attorneys in the coming years. While The Uhl Agency strongly encourages all businesses to consider Employment Practices Liability Insurance, there are several ways to help prevent potential lawsuits:
1) Prepare thorough job descriptions that establish the essential job functions and duties. These should be kept current and re-distributed to employees any time they are amended.
2) Require all job applicants to complete an application form. The application should state that it is not an offer of employment and that the business employs on an at-will basis.
3) Avoid unacceptable interview questions. These include questions pertaining to any illnesses, injuries, or disabilities a prospective employee may have as well as other health-related questions.
4) Have an employment handbook that clearly spells out company policies such as:
• Equal Employment Opportunity Policy
• No Harassment Policy
• Employment-At-Will Policy
• Family and Medical Leave Act Policy
• Telephone and Electronic Communications Systems Policy
• Discipline and Corrective Action Policy
Sound business practices can significantly reduce an employer’s exposure to claims alleging failure to hire, wrongful termination, sexual harassment, or discrimination. However, even the best of companies can be sued and Employment Practices Liability Insurance policies can cover defense costs even if your company was not in the wrong. Contact The Uhl Agency for additional details or to obtain a quote for this important insurance coverage.
