Top Reasons Employers Get Involved In Litigation

Top Reasons Employers Get Involved In Litigation

Employees are a critical part of every business operation.  Managing the employer-employee relation is important in keeping your business up and running.  Unfortunately, these relationships create issues that may lead to litigation.  Many of these lawsuits involve current or past employees who believe they have some “dirty laundry” on the business or think they can turn a minor grievance into a major payday:

Here are some of the reasons employers get into trouble.

1.    Lack of training. It is important that all managers have effective training on how to manage their employees.  It is also vital that you understand all statutes and laws that govern the employee-employer relationship.

1. Not Following the Company's Own Policies and Procedures.  It is important to make sure all managers and employees follow the procedures you have established.
2. Ignoring Employment Laws.  Failure to follow basic, relevant employment laws could be much worse than just a lawsuit.  You could face fines and other penalties. 
3. Documentation.  Documentation is a must for a business owner. It will protect you against lawsuits as long as you do the due process and you’re treating your employees fairly. Every action you take should have corresponding documents.
4. Not Using Employment Agreements.  Written employment agreements, as long as they’re professionally drafted, can eliminate any doubts about what is expected in the employee/employer relationship.

A normal commercial insurance policy may not cover this risk, so it pays to have us complete a review of your insurance coverage.  An Employment Practice Liability Insurance policy offers insurance protection against claims and lawsuits brought against a business, its officers or directors, or its employees and managers.