When it comes to running a business, employees are some of the most useful components available to help you achieve your business goals. However, they can also pose a major liability to both you and your business in a variety of ways. The best way to mitigate these risks is by ensuring you have high-quality business insurance to protect you and your assets. Here are a few of the major employee-related risks business insurance can mitigate.
1. Workers’ Compensation
When most employers think of workers’ compensation, they consider the obvious scenarios, such as when an employee is injured while on the job. However, a significant number of cases arise from less extraordinary situations. For example, an employee who does a lot of typing may develop carpal tunnel syndrome.
Whether or not this development occurs as a result of work is debatable, but it may put the business owner on the line for the employee’s medical bills. To mitigate this risk, consider investing in workers’ compensation insurance. San Diego business owners will be pleased to learn this type of insurance helps pay for the injured employee’s medical bills.
2. Employee Failures
Humans are extremely prone to making mistakes. However, when it comes to employees, these mistakes could put the business owner on the line for a hefty lawsuit. For instance, imagine an employee makes a transposition error on an invoice. This may seem like a small issue, but if it results in a monetary loss for a vendor or customer, it could turn into a major headache.
Sadly, the business owner will be the one paying the price for the mistake of the employee in this and many other scenarios. Most employee failures will be covered under general liability insurance. San Diego business owners should consider purchasing this type of insurance plan because it pays for legal defense and offsets other expenses incurred.
3. The Employment Process
Particularly in the current social climate, the employment process can be a tricky minefield to navigate. If an employee or potential hire accuses the business owner of discrimination or harassment, the owner may be on the line for some serious legal bills. This can also apply to a former employee’s claim of wrongful termination, or it could arise from something as simple as an off-color comment during a conversation. The insurance policy that would help in this case would be employment practices liability insurance. San Diego businesses won’t want to go without one of these policies.
4. General Employee Issues
As stated previously, employees are highly prone to making mistakes. However, sometimes these mistakes arise in ways business owners would not normally consider. A good example of this would be an employee posting something untrue about a competitor on social media. This is known as slander, which is illegal. However, the business owner is yet again the one who will be on the line for the error of the employee. These types of unexpected issues would also be covered under general liability insurance for businesses.
If you run a business in San Diego, get in touch with Tri-Star Insurance today, and we can put together a commercial insurance plan that best suits your company’s needs. We are also a leading provider of auto, health, home, and bond insurance. Call 619-272-2100 today to speak with one of our friendly and knowledgeable agents.