Employers, and staffing agencies in particular, are often subject to legal action or threats of lawsuits on the basis of wrongfully withheld worker’s compensation wages. These issues can become very complex quickly, but there are other issues that sometimes pose an even bigger threat. Workplace torts are common claims that are not covered under worker’s compensation, but employees can still sue for their effects. You should always choose employment practices liability coverage that includes work place torts.
Make Sure Your Coverage is Comprehensive
You may think that having insurance is enough, but some policies have gaps in coverage that still leave you vulnerable. Any of the following situations can be the basis of a work place tort lawsuit:
- Unfair demotion
- Gossip and defamation
- Hostile environment
- Biased discipline
These are all circumstances that an employee can claim and seek compensation for. You are vulnerable if your employment practices liability insurance does not cover you in these situations. Though many of these suits can quickly be dismissed before going to court, the expense of simply handling litigation and ensuring its dismissal can cost your staffing agency exorbitant resources. Your insurance should protect you from work place torts, give you peace of mind and keep frivolous lawsuits from hindering the success of your business.