Business Insurance and Your Employees

Business-related insurance can impact your employees in multiple ways. Health and life insurance may be a part of your benefits package. They likely are covered for work-related injuries through Worker’s Compensation Insurance and you probably contribute to unemployment insurance for them.

Most employers view their employees as valued assets and want to do everything possible to make sure their staff is properly covered when it comes to business-related activities. There are, however, instances when you may need to be protected FROM your employees. Here are several instances where your employees may cost you, and how business insurance can help.

An employee may sue you for discrimination or other employment-related activities. If an employee feels they have been discriminated due to their age, sex, or race, for example, they potentially could take you to court. This not only happens in the hiring process but when being passed over for a promotion. Employees can take employers to court for wrongful termination or harassment as well. Small and mid-size businesses may be particularly vulnerable for these types of legal actions because they may not have an extensive employee handbook or necessary legal resources. This is where Employment Practices Liability Insurance can help. EPLI can protect your company from the legal costs and financial penalties and even settlement expenses involved in such cases.

An employee causes property damage or injures someone. Some may not be aware that they can be held responsible should one of their employees harm someone else or cause damage to the property of another while conducting work for the company. Something as simple as an individual tripping over a hose or cable left unsecured by an employee can lead to significant expenses. The liability portion of your business insurance should be adequate enough to cover the actions of employees in such circumstances. Where professionals are involved, as in an accounting, financial services, legal or medical firms, Errors and Omissions insurance (E&O) can provide coverage for mistakes made in providing these related services.

Some business owners, especially small to mid-sized company owners, may feel this type of coverage is unnecessary. They may trust their employees or feel theirs is a close, tight-knit organization where such actions wouldn’t take place. These are risks that are unnecessary. Contact one of our business insurance professionals to discuss your company and your specific areas of risk. Allow them the opportunity to create a business insurance program to protect your company at the least possible cost.