All Smart Business Owners Should Have Employment Practices Insurance

As a business owner with employees, whether it's a single employee or it's a dozen or more, there is always the opportunity that your employees may file a claim against you. An employee may accuse you of discrimination, sexual harassment, wrongful termination, or anything else. Even if you're completely innocent of the charges against you, you will still have to go to court if the employee persists. That means you will have to miss work, hire a legal team and all the other expenses that go into defending yourself against employee initiated litigation. To help cover such costs and to protect you and your directors and officers from such claims, employment practices liability insurance is a must.

When to Purchase a Policy

You should purchase an employment practices insurance policy the moment you start to hire any employees. In fact, most investors and directors will require you to purchase this type of policy to protect them against any employee related claims. You never know when an employee may become disgruntled or fed up and decide to take it out on you, your company and your company's investors, directors and officers. That's why you should never go a day without employment practices insurance whenever you have anyone working for you.

Court Cases Are On the Rise

It's no secret that we live in an ultra-litigious society. These days people will sue you for pretty much anything. Whenever you deal with employees, there is always the chance that you will say something that they take the wrong way or that you will do something that offends someone working for you. Even if you've had the same employees for years and you trust every one of them with your life, you should still never leave your company's future to chance. It's said that three out of five employers will be sued by an employee. That's a staggering statistic and one that should make you want to purchase the perfect policy for your needs.

Your Employees

Every time you interact with someone working for you, you leave yourself open to some sort of claim. And even people who used to work for you can file claims seemingly out of nowhere. How many times have you laughed and joked with your employees? How many times have you fired someone when they thought you were being unfair? And more importantly, how many times have you 'befriended' your employees thinking that they'll always be there for you and your company no matter what?

The bottom line is that an employee is working for you for the money and the benefits, and little more. Their loyalty lies in themselves and providing for their families. So never let an employee get one over on you and never be taken by surprise by a court case, whether the claim is true or not. Instead, get the proper employment practices insurance that will ensure that you, your company and your company's investors and directors are always protected against any future claims.

Chaim Goldstein is President of BSD Business Insurance, which provides personalized service according to your business's needs. While other insurance providers deliver automatic quotes, BSD Business Insurance prefers to gain a deep understanding of your business in order to deliver the business insurance packages you desire.

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