You may not have a big staff, but you likely have a few employees – whether permanent, seasonal or temporary. Even family members hired to help out count as employees. Did you know that small businesses like yours are exposed to employment lawsuits? In fact, half of the lawsuits brought by employees are against small businesses.
Defending claims — even if they’re groundless — costs a business an average of $22,000-$40,000.
Here are 5 tips to reduce your employment practices liability and protect your business:
1. Prepare for the worst. If a claim does arise, documentation of due diligence in employment practices is key:
- Create written job descriptions
- Require applicants to fill out a job application
- If employee complains arise, take them seriously by documenting and following up
2. Remove hiring postings once you have hired. Believe it or not, lingering ads can expose you to claims of discriminatory hiring practices.
3. Complete employee background checks. If you have Employment Practices insurance, you may receive a break on background checks from your insurer.
5. Protect your business with Employment Practices Liability Insurance (EPLI). Coverage is probably more affordable thank you think and it gives you peace of mind!
The food truck business is HARD, make your life easier by avoiding employment related claims and taking the necessary steps to protect your business. Contact us today to learn more!