Most business owners understand that the possibility exists that an unhappy employee will consider suing them. There are many factors involved in the relationship between an employee and an employer and it doesn’t take much for an employee to resort to taking legal action when upset by something (or someone) at work. The “#MeToo” movement clearly illustrates that harassment in the workplace is a major issue.
It can happen at any time during a person’s tenure, including when someone is being interviewed for a position with a company. While there are several types of coverage necessary for a successful business, it is employee practices liability insurance (EPLI) that protects organizations when an employee decides to seek retribution through the court system.
A policy, available through insurers that handle Florida small business insurance, covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations. It can also be designed to cover the firm, including its directors and officers.
Cases against employers on the rise
It’s estimated that, on average, three out of five firms will at sometime face an EPL suit. Companies are finding out that they’re vulnerable, all the way from the pre-hiring process through the exit interview. It can happen to any firm or business at any time. Many companies have experienced a lawsuit generated by an employee, whether or not there was any grounds for it.
Anything, from an off-color joke being told in the break room, to an employee that has had their employment terminated for any number of company rules violations can trigger a claim. An interviewee, feeling strongly that they are going to be hired, is suddenly surprised when they end up being passed over for another candidate.
Many lawsuits frivolous and without grounds
Every employer faces the reality that they will be the target of legal action from past, present and prospective employees. Even if the claim is groundless or fraudulent, as is sometimes the case, the defense of a suit of this type can be expensive.
New technology firms are especially vulnerable to these types of lawsuits, often falling prey to claims because their management team hasn’t yet fully designed or implemented procedures for hiring, firing, and disciplining employees. With this much risk and these types of exposures you need Florida small business insurance to protect the interests of your company.