Employment practices liability insurance protects staffing firms from employee claims of discrimination, which can range from gender or race discrimination to harassment, wrongful termination and more. If you have a small company or have just started out, you may not be aware of the many areas in which you are exposed to work claims.
Reducing Your Risk
Here are some steps you can take to decrease your risk:
- Create an employee handbook outlining company policies and how you will deal with issues such as attendance or poor work.
- Develop job descriptions that include skills needed and performance level expected.
- Initiate annual performance reviews.
- Conduct a background check on each candidate.
- Make sure there is no language in your job application regarding age, sex or race. Include statements that anyone hired will be “at-will” and they can be terminated for any reason or none at all.
- Adopt a policy against discrimination, substance abuse and harassment. Define how to report such instances.
- Keep records of employee issues as they arise, and include actions taken to resolve them.
Review Your Insurance
Your staffing firm is at risk from the time you first interview someone. If you don’t hire the applicant, he or she may claim it was due to some type of discrimination. The best way to make sure you have adequate employment practices liability insurance is to review your exposure with your insurance agent.