Delaware Business Insurance Update from CNC Insurance Assoc. " Hiring and Firing More Risky Than Ever For Business" 3-4-17

The process of hiring and firing employees has become a risky endeavor for business owners. Employers are finding out the hard way that by not following good risk management protocols, their chance of lawsuits from disgruntled employees increase. The risks also increase if you have over 50 employees as this triggers many federal laws and rules that could trip up employers. So what does a business owner do to better protect themselves?  Along with a good risk management process, the next step,would be to buy a Employment Practices Liability policy (EPL).  This insurance policy will protect the employer from hiring and firing claims. For example, if a fired employee sues their employer for wrongful termination, this policy will pay defense costs and also cover any judgements. Another example would be if the business was being sued because it hired one person over the other, again the EPL policy would cover the employer. In addition to the protections of hiring and firing,  EPL policies have other beneficial coverage elements. These policies can cover claims for sexual misconduct, discrimination, and violations of federal employment laws just to name a few.
Every employer needs this coverage in their insurance portfolio. Call your insurance professional to get this added before you hire or fire. Until next time be careful out there and know your risks.

G. Kevin Nemith, Pres. CNC Insurance & The Business Insurance Center
Serving DE, MD, NJ, PA, & VA.
www.cncinsurance.com
www.bizinsurancetv.org

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