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In order to run a successful business, staffing agencies rely on their talented team of staff and temporary employees to showcase their expertise and dependability. But they are also quite aware that circumstances often develop where a job candidate or temp staffer may decide to sue the business over what they might perceive as unfair treatment, even going so far as to allege that the reason they weren’t offered, or were terminated from a position was due to a stance of a discriminatory nature.
For example, let’s say that a former employee makes claim that he or she was wrongfully terminated from their employment, and brings litigation against the staffing firm. Having employment practices liability insurance can help the staffing firm with defense costs as well as pay any court costs and settlements that often accompany this sort of accusation.
Why purchase employment liability insurance?
Obtaining employment practices liability insurance (EPLI) safeguards a business against the high costs associated with lawsuits as a result of charges of discrimination, harassment, wrongful termination, and other similar claims associated with unfair business practices.
A company would find it difficult to defend against any claim stating that they violated a person’s civil rights, or failed to provide a fair, acceptable environment for certain people to work in, without this coverage on hand. Temp staffing agencies often find they have a greater exposure since they, for the most part, do not have control & custody of their employees.
EPLI can cover your business when accused of anything from mismanaging employee benefits or wrongfully terminating employment, as well as claims that they wrongfully disciplined or demoted an employee, sexual harassment, damaging an employee’s reputation due to slander or libel, discrimination, based on age, gender, religion and race, or other such factors.
This also includes breaching an employment contract, invading an employee’s privacy, causing emotional or mental distress, or making negligent decisions related to hiring, promotions, or compensation.
If anyone in a management position violates legal protocols in the workplace, whether intentionally or not, the company could end up facing a lawsuit. Given that the nature of these claims often comes down to one person’s word against another, most companies would prefer to avoid being embroiled in a lawsuit, and purchasing employment practices liability insurance coverage is the right solution to what has become a very common workplace concern.
Many small business owners have a difficult time purchasing workers comp insurance coverage per their states regulations. For some, it’s just too expensive; for others, the job to be insured is too dangerous. As an insurance agent, it’s your responsibility to match the policy to the client, so work with a wholesaler that has the ability to handle small accounts just as effectively as large ones.
Small Account Issues
Some reasons why small business owners find getting workers compensation coverage tough is because many insurance companies are only interested in larger clients. Corporations mean money, and the small enterprise might find itself being rejected due to its lesser needs.
Another issue is your client’s niche. If you’re looking to secure workers comp insurance for a business office, you probably wont have too much trouble. If your client specializes in demolition, well, you’re going to be more hard-pressed to find a suitable carrier willing to take on the risk.
Variety Is the Spice of Insurance
In order to cater to the specialized needs of small business owners, you should work with a wholesaler that has a strong presence in the insurance industry. Even if your client does work in demolition, a wholesaler that knows several workers comp insurance markets can secure the policy you need, alongside educating your clients in OSHA regulations and safety.
In Connecticut, group benefits are a valuable consideration for most employees. In fact, benefits can be even more important than advancement opportunities, company culture, and other perks in fostering employee loyalty. That’s important to consider while going through the process of recruiting new employees, which often means investing a massive amount of your company’s time.
Benefits are less expensive than many people think
Health insurance is now certainly more affordable for small businesses than it’s been in recent years, due to new offerings under the Affordable Care Act. Your company can stand out from the competition by offering any and all available benefit options (only 28 percent of businesses with fewer than 10 employees offer health insurance).
By doing so, you’ll be giving your company a recruiting edge. If you’re convinced that you should provide your employees with solid group benefits, there are certain things that your company needs to consider:
1. Start with the basics
You want a healthy team that won’t undergo personal financial strain and you can accomplish this by providing health insurance and disability insurance. Once your business becomes financially stable, you can then add retirement contributions, gym memberships, catered lunches and the like.
2. Arrange for a solid group health-insurance plan to keep costs down
Often, new employees may be relatively young and healthy. For them, a bronze- or silver-level plan is appropriate (usually premiums will run $200 to $300 per employee per month). Find a plan that makes people stick to a network (an HMO or EPO), which will help keep your costs down.
3. Disability insurance is important to many employees
Employees, particularly those with families are concerned about the possibility of not being able to provide for them. You can offer short-term and long-term disability insurance, which pays a cash benefit if an employee is unable to work as a result of injury or illness.
Connecticut group benefits can be vital to employee retention. Speak to a reputable agent today about any concerns or questions.