Employment Practices Liability and Staffing Agency Insurance

staffing agency insurance

Employment practices liability (EPL) coverage is designed to protect companies, including staffing firms against any claims or allegations such as discrimination, sexual harassment or wrongful termination brought about by an applicant or employee.

This policy, an integral part of any staffing agency insurance portfolio, is specifically designed to provide coverage to the firm for their in-house employees and for their contract employees working in a temporary capacity. Temp workers are placed with clients and therefore are subject to their client’s workplace environment, which is not controlled by the staffing firm. Coverage is extended to the clients for any actions of the staffing services temporary workers while at their place of business.

Investigations should follow allegations

When an incident occurs where allegations of abuse or misuse of power occur, an investigation can often get to the root of the problem by addressing the problem and hopefully preventing any continuance of workplace issues. A formal investigation can be an important tool for responding to complaints or incidents of suspected misconduct in the workplace.

These investigations often improve employee morale and can even increase productivity, and have been known to put an end to inappropriate conduct by other employees. The holding of these internal investigations is crucial to an employer’s ability to avoid litigation. By promptly responding to employees concerns about their work environment, litigation might in many cases be avoided altogether since employees who feel their complaints are being properly addressed often respond positively to such actions.

Ways for conducting an effective investigation

To effectively address any allegations brought to your attention you need to review company policy to determine which policies are applicable to the complaint. Try to explain the process using simple language to communicate what goes on during the proceedings, and the exact purpose of the investigation, to the complainant and any witnesses.

Ask witnesses to identify corroborating evidence or other documents, and carefully document statements or evidence by taking detailed notes. Always conduct proceedings in a professional and courteous manner. Remind all involved parties of their obligations, which include confidentiality, non-retaliation, and the need for truthfulness and candor.

Finally, make sure to explain what is meant by retaliation and why such conduct is prohibited, and if you receive any reports of acts of a retaliatory nature, report such conduct immediately. Everyone should feel comfortable in the workplace and to deal with claims of this nature your organization will benefit from having staffing agency insurance that deals with EPL issues.