How Staffing Companies Can Protect Against Employee Lawsuits

employee liability insurance

Businesses in the staffing industry have several unique risks relating to employees. There are two main types of employee liability insurance that should be considered. Protecting yourself from unexpected claims is key to avoiding a financially crippling claim.

What Does Employee Benefits Liability Cover?

This insurance policy protects against claims that your administration was negligent. The errors and omissions covered by this plan are different than those covered by a traditional fiduciary liability policy. An example would be failing to change beneficiaries on a life insurance plan. Another covered instance may be failing to enroll your employee in your company’s medical plan.

What About Employment Practices Liability?

The second type of employee liability coverage covers other employment-related claims. This coverage is crucial to the staffing industry due to the fact their employees are under the management of their clients. The claims covered by this policy include:

  • Discrimination
  • Wrongful termination
  • Sexual harassment
  • Wrongful discipline
  • Wrongful demotion

While many lawsuits can end up holding no ground, defense costs can be difficult to deal with on their own. Shelling out the cash for time-consuming litigation can hinder your business from running smoothly. Consider your risks and look into these two forms of employee liability insurance. Protect yourself from any claims that may come from your employees.