3 Out of 5 Companies Will Face a Lawsuit From an Employee

KATY, Texas - July 29, 2013 - PRLog -- With the numbers of lawsuits on the rise, it’s important for companies to take steps to avoid potentially devastating lawsuits. Experts recommend precautions to avoid lawsuits in the first place, as well as EPLI to protect from lawsuits should they happen.

According to Insurepro.net, Employment Practice Liability Insurance is needed as soon as a company starts to hire employees.

“Companies are finding that they are vulnerable from the pre-hiring process through the exit interview, even if the employee was never hired, or only at the company a matter of days,” writes Insurepro.net.

“Every employer faces the reality that it will be the target of legal action from past, present and prospective employees,” Insurancepro.com continues, “Even if the claim is groundless or fraudulent, the defense of a suit can be expensive in time, resources and financially.”

Some experts recommend preventative measures in addition to an ELPI policy. While ELPI is important, training courses for employees and written policies can help to reduce the chances of a lawsuit.

“The most efficient way to help prevent employee lawsuits is to make sure your managers and employees are educated in EPLI so that you can minimize these problems before they become claims and possible lawsuits,” Writes Patrick O’ Neill, PJO Insurance Brokerage.

“In designing a course of actions that should be undertaken, you should look at diversity and sensitivity training courses,” writes O’Neill. “Have your HR department create an effective hiring and screening program as to avoid any discrimination, and make sure all company policies are posted and they are included in each employee’s handbook.”

Companies should also have a written and detailed procedure on what steps are taken in case an employee feels they are victims of sexual harassment or discrimination. This helps minimize problems that could later turn into a claim or lawsuit.

For more information on EPLI contact Texas Energy Insurance (www.texasenergyinsurance.com) (http://www.texasenergyinsurance.com/)

http://www.insurepro.net/html/employment_practices_liability.asp

http://pjobrokerage.com/liability/scottsdale-insurance-coverage-lacking-employment-practices-liability/