The issues arising from employee turnover are the most critical employment liabilities you face. Maintaining employment practices liability insurance is the safest way to protect your business from devastating lawsuits brought on during the termination of employment and hiring processes. A good liability insurance policy protects you from three key threats related to turnover:
1. Employee Terminations
Whether an employee is discharged or leaves your company by choice, he or she may make legal accusations against you. Discharged employees are obviously the biggest threat since they are often unhappy about the separation. However, some disgruntled employees are known to leave a company before they pursue their intended lawsuits.
2. Potential Employees
Every applicant is a potential employee and has a legal right to fair consideration for employment. This important right has done much good in the country, as it has helped groups that were previously discriminated against. Unfortunately, it also means that any potential employee who feels that he or she was wronged can take you to court.
3. New Hires
Any time you hire a new employee, you risk hiring someone who will create problems for your business. An undesirable employee leads to disciplinary actions and eventual termination. This, of course, begins the turnover liability cycle again.
Protect Your Company
The most important way to protect your company during your inevitable termination and hiring processes is to purchase employment practices liability insurance. Proper insurance coverage reduces the stress and potential problems involved in turnover. With this help, as long as you are managing your turnover in a wise and legal way, you have nothing to fear.