We all have heard about high profile cases and news stories in which employees make claims of sexual harassment, wrongful termination or discrimination. A company can lose a great deal of money if such claims are proven to be true, and can suffer on behalf of the actions of a few people in a department. The situation may be even more disturbing in the case of a staffing agency that is being sued on behalf of the actions of a client off-site. This is one reason you need employee practices liability insurance to make sure you are insulated from the problems that can result from these claims.
You may do your best to screen your applicants and choose appropriate clients without any history of complaints, but still, a claim of unfair employment practices can come out of the blue. Be prepared with a policy that covers you no matter what the circumstances. Talk to an insurance agent about options for an individual policy, deductibles, a comprehensive policy or umbrella liability insurance. You should also make sure you are insured in case an applicant suffers from bodily harm or property damage at the workplace.
You do your best to place the most qualified applicants in workplaces that suit them, but you can’t be everywhere. If something inappropriate happens with a client, feel more secure with employment practices liability insurance.