California Business and commercial insurance trends as I see the California Insurance Market evolve from the perspective of a independent California commercial insurance broker. Industries I have clients in include non-profits, manufacturing, commercial property owners, technology and software to name a few. I'll be discussing the trends in California Workers Compensation, Property Insurance, E&O, Errors and omissions, Directors and officers, D&O, EPLI, and other coverages
The nation’s economy is going through a dynamic shifting. This shifting is creating many shifts and slides in the way business is operated in corporate America and there is an increased need for Employment Practices Liability Insurance. Because the recent change in the economy has temporarily dampened the hopes of some Americans, law suites have been on the rise. Disgruntled employees who have experienced layoffs or the threats of layoffs have fought back by filing an increasing amount of lawsuits against their employers.
Most of these lawsuits have been filed against larger corporations. However, all companies lie at risk of experiencing an increased number of lawsuits. These lawsuits can include false allegations and one sided views of employees that feel that they should not have been layed off while others with less seniority were not. These lawsuits may at face value appear to be invalid but they may be able to open a can of legal worms that could destroy the business financially. Law suites also attempt to destroy the businesses reputation in the community. These lawsuits can be handled easily with EPL insurance.
It is estimated that as much as three out of five businesses will be sued by current or former employees. EPL insurance is needed as soon as businesses start hiring employees. Investors and directors are insisting that EPL insurance be a part of the company’s mainstream coverage. Directors and officers, investors, and business owner can each be held accountable or liable in law suites claiming that employee’s rights were violated. Employment Practices Liability Insurance protects and covers the business and the business owners from claims submitted by employees or ex-employees who are claiming that their rights were violated. This fairly new form of liability insurance is quickly being seen by business partners and investing partners as a crucial coverage for every business both large and small.
The vulnerability to such claims and lawsuits begins at the hiring process. Pre-screening tests may be deemed prejudice, biased or unfair. Extra caution must be taken during this economic shift to insure that all pre-screening and hiring procedures are not by the book. Proper accountability must be enforced as there are so many desperately seeking job opportunities. Even if a claim is proven to be fraudulent it can be costly in both time and money.
Newer firms may be at more of a risk than older firms. To avoid these unwanted law suites create a hiring, firing and discipline procedure that is approved by your lawyer before hiring anyone. The most important safety factor in today’s worry frayed economy is to purchase Employment Practices Liability Insurance. EPL insurance is an important safety factor in today’s economy.
