A major concern for staffing agencies, much like most any other business, comes from claims by employees that they were harassed by management or received improper treatment from people within the organization. Employment Practices Liability (EPL) insurance policies protect businesses from much of the financial costs incurred from allegations resulting in employment-related lawsuits.
An employee can accuse anyone of inappropriate behavior at work, and many claims are filed citing everything from wrongful termination, to harassment, and even discrimination and the list goes on. You may choose to also get coverage that protects directors and officers, as part of your employment agency insurance package, in the event of liability claims that may occur against these individuals.
Protecting against EPL lawsuits
Most companies create internal policies and procedures that are implemented as a way to protect against claims, and such practices help to lower a business’s premiums for EPL coverage. It’s essential that every employer has a written employee handbook with a focus on strong anti-harassment and anti-discrimination policies. Make sure that each employee receives a copy upon orientation. Employees that don’t follow procedures as outlined actually provide your business with part of your defense against any lawsuit filed as a result of their accusation.
It’s important to provide training to all managers and supervisors. They should have a good grasp of HR procedures and policies and you might want to include additional training that involves handling discharge procedures for employees being terminated as well as procedures for how to handle and prevent harassment or discrimination in the workplace. Having an anti-retaliation provision statement says that it’s the policy of the business not to retaliate against employees over accusations of unfair treatment.
Develop a code of ethics policy that informs employees that they shouldn’t engage in certain activities, like giving kickbacks or engaging in other unethical practices. Your company is vulnerable to disgruntled employees or candidates that feel they have received unfair treatment and wish to seek retribution. Employment practices liability coverage, an integral part of your employment agency insurance, is your best line of defense.