Employment Practices Liability Concerns

Employment practices liability insurance covers wrongful acts that arise during the employment process. Claims vary a great deal, but each one can be devastating for a company that doesn’t have adequate coverage.

Common Claims

The most common EPLI claims center around disgruntled employees. Let’s look at a few examples.

  • Discrimination – An employee cannot be terminated or discriminated against because of age, sex, race or ethnicity. Someone who feels they have been wronged can file a legal claim.
  • Sexual Harassment – A manager may be sued if they make unwanted sexual advances or create an uncomfortable working environment for someone.
  • Retaliation – An employee who comes forward with a complaint may be the victim of retaliation in the future.
  • Failure to Promote – If an employee feels they have been overlooked for a promotion because of discriminatory or retaliation reasons, they may seek legal counsel.

Business owners must realize that they could be held liable for paying the legal fees even if they’ve done nothing wrong.

Proactive Measures to Reduce Risks

It’s wise to develop an employee handbook that explains the company’s behavioral policies. Each employee must read and sign a document stating they understand and will comply with the provisions.

Protect your business and your employees from dangerous employment practices litigation.

A Short Guide To EO Insurance For Insurance Agents

As an insurance agent, you help your clients to find the best coverage possible to adequately address their unique insurance needs. However, ironically enough, insurance agents also face a certain amount of financial risk and should have insurance of their own. This is where e&o insurance for insurance agents can come in to help.

What Is E&O Insurance?

E&O insurance, or errors and omissions insurance is a type of professional liability insurance that offers protection against financial damages that can result from an alleged error or omission you make while providing your services to a client. To simplify things, it essentially protects you when you make a mistake or forget to do something and end up negatively affecting one of your clients.

Why Do You Need E&O Insurance?

If you make an error or omission while providing your professional insurance-related services, it can result in a lawsuit that can cost you large amounts of money in both legal fees and settlements. These costs can be immense and can even force you to go out of business if you don’t have the funds available to handle them. E&O insurance can cover these costs for you so you can focus your funds on growing your business.

Being an insurance agent can be risky. E&O insurance can help offer you far more peace of mind.

Top Reasons Why Students May Want To Opt for Taxis Over Other Transportation Methods

If you’re a student, you may be wondering what your best options for transportation are. Even if you live in an area with several viable choices, taxi driving for students could potentially help you save money and even stay safer than some other common transportation methods. Here’s why.

It Allows Students To Experience Additional Safety and Convenience

One of the top benefits of using a taxi over other types of transportation is that you get both safety and convenience at your fingertips. When you choose a taxi, you get:

  • The experience of professional drivers
  • The flexibility of choosing when they need a ride
  • The safety of riding in an up-to-date vehicle with a knowledgeable driver

It May Be a Quick and Affordable Alternative

Students are often on tight budgets, making taxis a viable option when compared to certain other types of transportation. For instance, owning and driving your own car could involve gas costs, insurance costs, maintenance costs and more. Compare taxi prices in your area to these other transportation methods to see how much you could potentially save by switching.

  • City buses
  • Metros
  • Trains
  • Personal vehicles

Getting around safely and affordably when you’re a student is important. For a convenient and secure transportation option, consider trying out taxi driving for students.

Things To Know About Contingent Liability Insurance

Contingent liability insurance is an option for businesses looking to protect themselves while they make transactions. Specifically, it protects against any exposures, claims, and disputes that arise during business transactions. Read on to learn more about its benefits and how it differs from other types of coverage.

Benefits

Oftentimes, the liabilities of various risks are heavily debated when two companies make a transaction. These negotiations can often result in changes to the agreement that makes the result undesirable for one side and a drawn-out process. However, having a contingent liability policy can mitigate the risks, making negotiations less intense and a shorter process.

Coverage

These policies protect businesses from risks associated with mergers, acquisitions, and other types of transactions. For instance, most policies protect against litigation exposures, infringement claims, environmental exposures, accounting exposures, and employment disputes. As with any insurance policy, you choose a specified coverage when purchasing your policy, and it will have the specifics on what is covered.

This type of policy is perfect for protecting a business against issues during mergers and other transactions. It comes with many benefits that can make the cost worth it. It is perfect for businesses that plan on doing plenty of transactions. Learning more about it can help you decide if this is a good fit for your business.

2 Types of Fraud Businesses Need to Watch For

When most people think of employees stealing from their employment, they imagine someone raiding the supply closet and hauling boxes of pens and stacks of legal pads home with them. Payroll fraud (including ghost payroll and timesheet fraud) is a more costly sort of fraud that occurs in businesses of all sizes across the country.

Ghost Payroll

Do you compensate people who don’t truly work for you? You could be surprised. The second most common sort of fraud is ghost payroll, which is frequently perpetrated by your payroll staff or manager. In a nutshell, a ghost employee is either a fictitious person who has never worked for your firm but was “created” by payroll to drain funds or a former employee who left but was never legally terminated in the payroll system.

Timesheet Fraud

Paying employees inappropriately for the hours they work is known as timesheet fraud. Employees may have a coworker clock in and out for them when they aren’t even scheduled to work; in other situations, corporations overpay employees based on fraudulent timesheet entries.

One typical timesheet scam is for an employee to “forget” to clock in or out, necessitating a manual input, to which they then add excess hours. In other circumstances, a payroll clerk may be complicit in the plan, manually altering employee timesheets to boost the number of hours worked or even the pay rate.

Payroll fraud is expensive for your company. It’s critical to keep track of who’s getting paid what and to ensure that employees are getting paid what they’re worth. Furthermore, if your payroll is exact, you can concentrate on keeping those paper clips from escaping the supply closet.

Top 3 Ways Workers Are Protected During Illness

Employees who suffer an illness or injury may be worried about how they’ll provide for their families should they require time off to heal. Fortunately, the modern workplace does provide safeguards and many employers are even compelled by law to provide them. These are the top three ways

Family and Medical Leave Act

The Family and Medical Leave Act (FMLA) is a U.S. Department of Labor mandate to protect the jobs of those forced to leave work to care for themselves or a family member in certain medical situations. This is typically unpaid leave, but the employer must hold the employee’s job open during the absence. In addition, some states also offer paid family leave for certain scenarios

Workers’ Compensation

Workers’ compensation helps pay for medical bills and lost wages for injuries sustained on the job. Sometimes, FMLA and workers comp may both apply for an injury that turns into a covered medical condition. In that case, the employer would apply whichever is more beneficial to the employee.

Life and Health Insurance

Life and health are common insurance benefits offered to employees that can help in the event of an employee’s illness. While health insurance is there to pay the ongoing medical costs, life insurance benefits can replace the employee’s salary in the family should the worker pass away.

Employees are often worried about what would happen if they were unable to work. Thankfully, American businesses are equipped with benefits that apply when an employee becomes sick or injured.

 

Good Communication Is Good Business

Businesses are built by people, and people function best when they are happy. Numbers show that when your employees are happy, your business reaps the rewards. One of the easiest ways to increase employee happiness is to have an open flow of communication in the workplace.

Better Communication, Better Numbers

Clear communication in the workplace helps employees establish and clarify business values and daily goals. Establishing business objectives clarifies expectations and unifies employees in a purpose. Having clear guidelines established increases your daily productivity. Studies estimate that poor communication practices can cost organizations up to $62.4 million a year. In addition to saving your budget, good communication increases employee production. Employees who feel positively about the communication in their work environment perform 4.6 times better than their counterparts.

Healthy Communication, Healthy Culture

In addition to increased productivity, healthy workplace communication boosts workplace culture and thus employee loyalty. By establishing a trustworthy, non-threatening environment and boosting employee self-esteem you decrease employee turnover. Research reflects that employees who are stressed out and not supported in their work environment are 50% more likely to seek other employment. Considering that replacing an employee can cost up to 20% of that person’s salary, keeping employee turnover low is just more cost-effective. The impacts of positive communication on a business save you money in the long run.

Good communication is a basic practice of good business. Positive communication is the smartest investment you can make; and as employee satisfaction goes up, so will your numbers.

3 Easy Ways To Reduce Workers’ Comp Costs

Hiring a new employee is an exciting step for growing businesses, but it can also be a daunting one. It is not unheard of for employees to take advantage of the situation and file a workers’ compensation claim for an injury that may have been pre-existing or may not have actually occurred on the job. Fortunately, businesses can take a number of measures to reduce the likelihood of such an incident and thus decrease workers’ comp costs.

  1. Pre-Employment Physicals

Many employers are able to minimize health concerns for both new and existing employees by using pre employment physicals to reduce work comp costs. These routine check-ups prevent employees from making false claims about conditions or injuries they had before even taking the job.

  1. Background Checks

Similar to pre-employment physicals, background checks allow employers to identify issues that employees can use to their advantage in a workers’ comp case. If, for example, an employee tests positive for drugs, they are more at risk for becoming injured or inducing injury on the job. Knowing this in advance can prevent a legal fiasco.

  1. Employment History

Unfortunately, some employees are chronic manipulators. By closely examining a new hire’s employment history and references, businesses can identify any past instances of workers comp or other similar claims, as repeat offenders are not uncommon.

Despite the fact that employees often take advantage of workers’ comp payouts, there are a number of simple protocols every business can put into place to minimize costs, stress, and even reputational damages.

Course of Construction Insurance vs. Builders Risk

Builders risk and course of construction insurance are two names given to the same type of insurance policy. Even though it may seem like insurance agents created this terminology just to confuse people, there is actually a good reason that people refer to the coverage by two different names. Here is a description of course of construction insurance vs. builders risk and an explanation of why each term accurately describes the benefits of carrying this type of policy.

Course of Construction

Course of construction is an apt name for an insurance policy that protects a new building throughout the period when builders are creating it. This type of policy covers losses from the following events:

  • Fire
  • High winds
  • Hail
  • Lightning strikes
  • Theft
  • Vandalism
  • Car crashes
  • Explosions

Builders Risk

Builders risk is also a good name for this coverage because it is the builder of the property who assumes all the risks during construction. The company must mitigate losses to its investments in tools, building materials, and other equipment in order to stay in business.

Course of construction and builders risk are both appropriate names. No matter which name is most popular in the region where you live, this type of policy is a smart investment for a construction company to make.

Workers’ Compensation Specialists Can Help You Find the Right Plan

Protecting your workers is an integral component of your business operations. There are a number of ways to increase safety around the workplace. From putting effort into communicating precautionary measures to your team to following OSHA guidelines at every turn, you need to dedicate time to devise a practical plan for the safety of your team. Taking out appropriate insurance is a large part of the process. If you have the right workers’ compensation package in place, it can provide both you and your workers with peace of mind.

Work With Professionals

To ensure you are delivering the best plan to your team, it can be useful to work with workers compensation specialists. Experts in the realm of insurance can provide you with in-depth information on what policy options are most useful for your field. What’s more, these professionals typically have a good understanding of the unique risks facing each industry. With this knowledge as a resource, you will have no trouble discovering a plan that protects your assets. Other points to consider with your insurance can include:

  • Directors and officers coverage
  • Errors and omissions insurance
  • Commercial auto policies

Understand the Options

Taking the right precautions can make a world of difference when it comes to your business. Review the ins and outs of workers’ comp to find a plan that fully covers your team in the event of an accident.