Employee staffing firms are a booming industry. From large companies to small, businesses rely upon staffing firms to fill their employee vacancies. It is imperative that staffing firms have employment practices liability insurance to protect themselves from potential lawsuits. As the National Labor Relations Board updates and changes hiring standards frequently, it’s important to know and understand your coverage.
Types of Coverage
Employment practices liability insurance protects against employee-related lawsuits. If your company hires, fires, evaluates, or supervises employees or contractors, you need this insurance. It covers employee claims such as:
- Workplace harassment
- Breach of contract or employee agreement
- Wrongful termination
- Sexual Harassment
These types of lawsuits are on the rise, and without insurance, a judgement against your company could be financially devastating.
In addition to having good employment practices liability insurance, implement a company protocol for hiring, disciplining, and firing employees. Get legal advice on best hiring practices and publish it in a company handbook. Train your employees on these practices and make sure they understand what is expected of them. Practice hiring and firing drills to inculcate your company plan. These steps will mitigate the frequency of lawsuits, but not stop them altogether. Make sure your business is prepared with an insurance policy that cover all contingencies.