Business owners understand the importance of developing a robust benefits plan. A competitive package can entice talented people to join your company. Don’t forget to include liability verbiage in your benefits plan, however, to protect your business from frivolous lawsuits. Speak with your insurance agent about the best liability coverage to best meet your needs.

Employee Liability Issues

Employment practices liability for employee benefit plans will protect your company from many employment-related issues. These can include such things as:

  • Harassment Claims – If an employee feels they have been harassed or made to feel uncomfortable by a supervisor or another employee, they may seek legal counsel.
  • Discrimination – An employee may feel that they have been overlooked for a promotion because of discrimination. Types of discrimination include race, gender, age and sexual orientation.
  • Failure to Hire – Several laws protect many individuals from unfair hiring practices, including the Americans with Disabilities Act and the Civil Rights Act.

Directors and Officers Concerns

Your management team makes a lot of difficult and important decisions for the company. With this responsibility, however, come many risks. Unhappy clients can seek legal action if promises are unkept. Investors can also sue if they have lost financial assets because of decisions that were made on their behalf.

The combination of a comprehensive liability package and good communication with your employees will greatly reduce your risks.

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