It is common knowledge that employment practices liability insurance can help you when lawsuits arise, but did you know that it may also help you avoid lawsuits? A good insurance agent goes a long way in actually reducing the number of employment practices lawsuits that businesses face. Your agent can help you by giving productive liability tips.
Reduce Your Liability
The most important way to avoid lawsuits is to reduce your liability. Your employment practices liability insurance company sees first-hand which management practices and policies are effective, and which are not. An agent will give you tips on how to avoid common personnel mistakes, and educate you on trending lawsuits. The media’s coverage of employment lawsuits has a tendency to lead to additional similar cases. Your insurance company is your best source for a list of up-to-date common lawsuits. Currently, the top reasons employees sue their employers are for real or perceived problems regarding:
- Disciplinary measures
- Wage or salary discrepancies
Employment practices liability insurance can save your company money by paying for damages awarded in lawsuits, but their true role is much broader. The choice to purchase insurance is a choice to accept regular help in avoiding lawsuits completely. As you follow the advice you receive from your agent, and you call for special help when a lawsuit appears imminent, you can spare yourself the stress and time involved in court proceedings.