How Staff Insurance Policies Protect Businesses

In today’s world, it is critical for businesses to have some form of staff insurance. Employee practices liability insurance, for example, protects businesses from claims made by disgruntled employees. Lawsuits can lead to enormous financial strain, and companies need to acquire protection in order to endure such difficult situations.


What Does an Insurance Policy Cover?


Staff insurance policies cover a variety of claims. For instance, employee practices liability insurance generally covers:


  • Workplace harassment
  • Workplace discrimination
  • Wrongful discharge
  • Emotional distress
  • Breach of contract for employment


This type of insurance does not usually cover injuries caused by the company. Rather, policies cover the actions of individual employees and managers.


What are the Terms of a Policy?


Insurance policies of this kind are often written on a claims-made basis. In other words, claims must be reported to an insurance provider while a policy is still in effect. Moreover, the event that led to the claim must have occurred on or after the date when the policy began. Some providers offer retroactive dates or full protection for earlier claims, but businesses should review the terms of their policies to determine whether or not these options are available to them.


Businesses should discus their options with an insurance provider before securing policies. There are many aspects to staff insurance, and businesses should obtain a policy that offers them thorough protection.