Management Liability Insurance Brokers Urge SMBs to Mind their Risks

If left unattended, issues that pit employees against their employers can turn a productive and efficient workplace into a battleground before long. When such a case manages to escape the confines of the office and gets public, it can severely damage a company’s reputation. To protect themselves from such a scenario, small-medium enterprises (SMEs) in the Sunshine Coast would do well to implement best practices and carry out preventive measures.

Practical Tips

A Forbes article details a couple of ways businesses can minimise the chances of employees filing for management liability practices against them. Among other things, it is essential to train managers and make them aware about issues that could create unwanted legal risks for the company—such as discrimination, bullying or harassment, and wrongful termination, among other things. The right training can lead to better enforcement of company policies and put a stop to violations that could leave the company vulnerable to lawsuits.

In the event that a serious employee-related lawsuit has taken place, it is paramount for managers and business owners to take all details of the incident into account.

Having a thorough, accurate record of a past history of employee problems can prove invaluable to management should allegations of management impropriety later be raised. Good records make good management.

Apart from training managers, business owners in the Sunshine Coast can also enlist the assistance of their HR specialists as well as experienced management liability insurance brokers such as Insuring theProduct. Such a company can recommend what insurance policies businesses can get to protect themselves from various management liability lawsuits including Employment Practices liability. Brokers normally use a management liability insurance fact-finder who can advise business owners on how to craft their policies after conducting thorough research and report about a business’ historical claims, projected trends, and contracts for the duration of the insurance policy.

A lot of variables come into play when it comes to handling employee-related issues. Aside from committing to best management practices, SMEs would do well to obtain management liability insurance in the Sunshine Coast with the help of trusted broker as preventive measures against costly lawsuits that might be brought against them.

(Source: Practical Tips To Help Management Avoid Costly, Preventable Employee Lawsuits, Forbes, August 20, 2014)

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