When you run a business and employ people, there are rules and laws you must follow without exception. You can’t discriminate. You can’t refuse to pay someone for work they’ve done. You can’t and should never harass anyone, including your employees. Any one of these things can get you in hot water. Do it often enough, and eventually you’ll be faced with a major lawsuit.
Unfortunately, you can do everything by the book, treat every employee well, and still get sued.
From bad business practices, a lack of understanding, or just bad luck — whatever the reason — employment practices liability insurance is the best answer to a surprise lawsuit.
California Employment Practices Liability Coverage
What kinds of events or accusations are covered by a California employment practices liability insurance policy? More than you might realize.
Many lawsuits occur for wage disputes, overtime and wage calculations, and wrongful termination.
Sometimes it’s a bad act from a supervisor or manager. In other cases, a current or former employee is angry and wants to take their pound of flesh from your company.
Depending on the size of your business, California employment practices liability coverage may either be added on to your current general liability insurance or purchased as a separate policy. Most policies are written on a claims-made basis which means that in order for a claim to be covered, the incident has to occur during the coverage period.
While large companies have large insurance policies as well as legal and Human Resource departments to keep them out of trouble, most small businesses don’t. You can use some of what big businesses do well and apply them to your company.
At IBW, we understand the potential liability a business can face. We’re here to help you protect your business and your future so you can continue doing what you love. Your company provides jobs, helps the economy, and takes care of your family. It shouldn’t be lost because of one angry employee.