Owning a business is a great accomplishment for many, and as a small business ourselves, we understand the hard work you put in every day to make your business function.
That’s why we’ve put together a list of common business risk, and ways you can protect yourself as a business owner, because they last thing we would hate for you to have to do is close your doors for good. Don’t let liability shut down your business for good.
First and foremost, if you don’t have Employment Practices Liability Insurance or an EPLI policy in place, it’s a necessity to protect yourself from being sued by former or current employees.
Unfortunately, many business owners do not have this coverage, but they should because lawsuits happen to any business, big or small. In fact, a former Ford employee sued the company and his former supervisors for emotional distress, harassment, discrimination, and a hostile work environment and won $16.8 million from the suit, while other employees have filed suits against Ford regarding sexual harassment.
How else can an EPLI policy protect your business?
Common business risks can occur when you host or sponsor any type of business event. Whether it’s a Christmas party or a company picnic, if you plan to host any type of event for your employees on or off business premises, incidents can still occur.
Even if you have a no harassment policy at your business, and a well defined employee handbook, if an employee feels harassed, uncomfortable, or threatened by another employee during a company event they can file a lawsuit against you and the business for failing to protect them. An EPLI policy will protect you and cover the expenses associated with legal fees, so be sure to talk to one of our licensed insurance agents about adding this coverage to your current insurance policy.
Speaking of business hosted events, the likelihood of harassment and hostility during a company outing often increases when alcohol is present.
If you plan to serve alcohol at your business hosted event, protect your business, and be sure to talk to Stephanie Fanelli about adding Host Liquor Liability to your Commercial General Liability Insurance. Anything can happen when people are drinking, and you don’t want to be liable for damages caused by intoxicated employees.
Other common business risks include injuries on and off site. If an employee is injured or sick while doing their job, the employer is liable. That’s where Workers Compensation Insurance comes in to play, and in the state of Connecticut it’s legally required for businesses with one or more employees to have it.
Owning your own business is a part of the American Dream; just be sure you understand how to protect yourself from these common business risks. If you ever have any questions about commercial insurance for your business, do not hesitate to reach out to us by phone (860-684-5270), email, or through Facebook Messenger.