Why SMEs need Employment Practices Liability Insurance.

[Etini Willie]

According to lawkimsider.com, Employment Practices means activities related to recruitment, hiring, evaluation, promotion, demotion, discipline, or termination of an “employee.” Ideally, they are legal ways of recruitment, hiring, evaluation, promotion, demotion, and termination of an employee. An organization might knowingly or unknowingly violate this legal provision. This would lead to 'Employment Practice Related Claims'. This is a situation where a present or past employee of an organization sues the organization for claims arising to the fact that there was a breach in employment practice on the course of his/ her professional connection with the organization. This claim is called an Employment Practice Liability.

Why do small businesses need "Employment Practices Liability Insurance"? Small businesses of all kinds of businesses need Employment Practice Liability Insurance because

Their hiring processes are most times not well documented: Mostly by omission, small businesses don't document every interchange between the employee and the managers, most especially discussions that bother on discipline. Given the fact that small businesses have a difficulty in retaining staff, it is possible that an ex staff is bearing grudges against the company that has not been addressed.

To be on the safe side, a small business should just buy an Employment Practices Liability Insurance.