Small Business Has a Big Headache

Small businesses are at greater risk for liability lawsuits now than at any time in the last 50 years. Part of the reason is that people continue to feel very insecure in their jobs, and they are more likely to perceive discrimination or retaliation if they fail to receive a promotion or are laid off. In the past, large corporations were most likely to experience employment-related lawsuits, but this is changing. Nowadays, small businesses experience 50 percent of all employee liability claims, but not even 2 percent of these businesses carry employment practices liability insurance.

Employee Complaints Are Hard to Resolve

Employee accusations can quickly become complex and hard to address. An employee who files a discrimination lawsuit may also file a claim on the premise that the lawsuit caused the employer to treat him or her differently as a form of punishment. The second lawsuit is much more difficult to defend against in court because it usually involves concrete actions such as a transfer to another department or job loss, although allegations of discrimination can also be hard to substantiate.

Employment Practices Liability Insurance Provides Wide Coverage

If you own a small business, purchasing employment practices liability insurance could save you from debilitating costs that could wreck your future growth and success. Policies cover a wide range of situations, and you can even choose to have the insurer provide defense counsel in addition to paying legal fees. Having a good liability policy frees you to concentrate on what you do best, which is running your small business.

This post was written by , posted on November 7, 2015 Saturday at 12:30 pm

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