Each day employers make decisions that directly affect their employees. They choose who to hire, who to fire, and who to promote. Sometimes these decisions can lead to unfortunate consequences. Employees may feel wronged by their employer and file a claim. Having staff insurance prevents companies from dealing with the financial damage that can result from a lawsuit.
What Does an Insurance Policy Cover?
This type of insurance is designed to protect companies against a variety of claims:
- Gender and age discrimination
- Sexual harassment
- Wrongful termination
- Wrongful discipline
In general, policies cover directors and officers, management personnel, and employees. Coverage can also be extended to non-employees and clients who are subject to the workplace environment.
How Does a Business Receive Coverage?
Certain types of staff insurance, such as employment liability practice insurance, are written on a claims-made basis. This means that if businesses expect to receive coverage, then they will need to report their claims while their policies are still in effect. In addition, the event that led to the claim must have occurred on or after a specific date. Some insurance providers offer retroactive dates to their clients, and businesses should speak to their provider to see if this is an option for them.
Staff insurance can help a business pay defense or settlement costs that arise over the course of a lawsuit. By speaking with a provider, companies can protect themselves from financially damaging situations.