Last week we discussed what employment practices liability insurance (EPLI) is and why the coverage is important. And, why we are seeing EPLI claims at a higher frequency than ever before. This week we will be discussing ways to avoid an EPLI claim whether you buy the coverage or not.
Just like protecting your business from fire loss there are steps you can take to limit your employment practices liability exposure by doing the following:
* Review your potential for loss with an expert – your insurance agent. Together you can determine whether EPLI would be a good fit for your business.
* Make certain that you have an employee handbook regardless how small you are. Use a professional template to complete the handbook and make certain that the handbook explains your policies for discipline and termination. Have all employees read and sign that they received a copy.
* Create a job description for each position, again, no matter how small your business and have the description clearly outline the expectations of the position.
* Conduct regular reviews for each position to determine performance and note the employee file.
* Have a screening and hiring process in place to separate unsuitable candidates from those you intend to interview.
* Conduct background checks on the candidates you are considering employment and try not to hire anyone with alcohol and drug problems.
* Create a zero tolerance policy with regard to discrimination, substance abuse and any form of harassment.
* Keep adequate records of all employee issues and the steps that you took to deal with them. Any record that changes an employee status should have their signature that the subject was discussed with them, that they understand the subject however by signing the document they do not necessarily agree, only that they have accepted a copy.
These are only a few examples, there are many more and we will discuss more ways to protect your business in future blogs.