employment practices liability

Managing Risk By Maintaining Crime Insurance

There are many areas in a business that create risk and unnecessary exposures to crime, either internally or from outside forces. By managing these problem areas a business owner can help to greatly reduce some costly concerns and therefore save his or her company an exorbitant amount of money. Crime is one of those things that every company must be aware of. Whether employees are stealing from you, or thieves, shoplifters and burglars are the culprits behind these losses, crime insurance is the most valuable solution to stem the tide of losses.

Taking adequate security measures can pay dividends

In order to avoid risk, a company must determine just what those risks are. Here are some ways in which a business can assess their risk and also determine ways to prevent unfortunate losses from occurring:

  • Installing adequate devices to control unauthorized entry onto the premises
  • Have a burglar alarm that reports to a central station or a constantly attended monitoring facility
  • Have adequate fencing and gates around the building and parking areas
  • Provide adequate exterior and interior lighting, and
  • Have adequate door and window locks and control access to premises by physical barriers and/or surveillance

Beyond this, you may also wish to require the use of company ID badges, have appropriate visitor sign-in sheets and escort procedures, have check-in and check-out procedures, and an inventory control system in place.

Your accounting department should also be closely monitored. It might be preferable if a single person oversees cash, bank deposits and inventory. Instruct the person in charge to make cash deposits frequently in order to limit the amount of cash on hand. You might also be better off if billing is independently reconciled to ensure proper charges, credits and refunds are administered.

Protection from Theft

Employees should be properly trained to handle situations involving theft and fraud.

Train staff to recognize shoplifting risks and also on the proper way to respond when a situation unfolds. They should be trained to recognize counterfeit currency, determine credit card validity, and report acts of vandalism or theft committed by employees, visitors, vendors, or contractors.

By better managing the premises through security measures, overseeing accounting practices and ensuring that deposits are regularly scheduled, a company can make great strides in reducing risk and avoiding losses that will increase crime insurance premiums.

Staffing Companies and Employment Practices Liability Concerns

Employee relations can be challenging for staffing agencies because they have such a unique situation. This is due to the fact that their candidates are being placed under the direction of their clients, rather than being directly supervised by the agency itself. This means that technically, when an employee files an employment practices liability claim, the temporary staffing agency and the company where the employee works (or worked) both can be sued.

There is a type of insurance that any business concerned with lawsuits for discrimination, harassment and the like should have, and it’s called employment practices liability insurance (EPLI or EPL), which is intended to cover most employment-related lawsuits that companies often face.

Common reasons why EPL suits are filed

The list of reasons why an employee might decide to sue the company they work for is a long one. If someone feels unduly harassed by an officer of the company or even another employee, and they feel that the company isn’t doing anything about the situation, then this type of behavior often triggers a claim. In addition, discrimination, whether sexual, racial, or of another nature can lead to a lawsuit as well. People who feel they were passed over for a promotion (this is often the case when someone else is promoted that they feel is “less qualified” for that same position) will want to be compensated for what they feel is an unfair business practice.

Lawsuits also stem from new candidates who aren’t offered a job, employees who believe they were wrongfully demoted or given a negative evaluation, or those who feel they were a victim of libel, slander, had their privacy invaded, or were simply misrepresented in some way. In an environment where so many people come together for a common cause, personality clashes can lead to misunderstandings, or petty mistreatment. EPL has even been the result of telling inappropriate jokes at work or looking at photos or websites deemed lascivious and not proper in a working environment.

If you own or manage a staffing agency odds are you will need employment practices liability insurance. Lawsuits are often filed in situations that seemingly are just fine, and that’s due to the fact that those in charge don’t realize that these tensions even exist.