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Top termination mistakes that may end in lawsuits

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As difficult as it can be to let go of an employee, sometimes it is a necessary act, whether for financial reasons or errors made on that employee’s part. However, even with at-will employees certain errors in termination may lead to legal trouble for an employer. These are the top reasons, according to Reuters.

Laying off an employee for discriminatory reasons is not permissible and may violate wrongful termination laws within the employers state. Types of discrimination include race, gender, disability, religion, age or nationality. Firing someone due to medical conditions, including pregnancy, is also illegal, according to the source.

Retaliatory firings can also end in a legal dispute, the source says. If an employee files a complaint and is fired as a result, the company may be found in violation of the law, even if the employees claim was unfounded.

Finally, employees cannot be fired for refusing to take a lie detector test under the federal Employee Polygraph Protection Act, the source warns.

Wrongful termination suits are common and sometimes can be brought for reasons outside those mentioned above. Employers who have employment practices liability insurance can be financially protected in the event that similar claims are filed against them.

 

General Liability Insurance

What Is General Liability Insurance? Commercial General Liability Insurance protects small-business owners from claims of injury, property damage, and negligence related to their business activities.

Workers’ Compensation

What Is Workers’ Compensation Insurance? Workers’ compensation insurance covers your employees’ medical expenses and at least some portion of their lost wages if they are injured on the job.

Business Owners Policy

What Is a Business Owners Policy? A BOP is simply bundled insurance designed to provide essential coverage to certain business owners at a competitive price. A BOP insurance coverage includes

Professional Liability Insurance

Professional liability insurance also called , errors and omissions insurance (E&O; insurance), protects you if a client claims that your services caused them to suffer a financial loss. While general liability insurance is primarily focused on property damage or bodily injury,

Disability Benefits Insurance

Employers in New York State are obligated to offer disability benefits insurance to their employees. This coverage is specifically designed to provide financial assistance in the event of off-the-job injuries or illnesses.



Business Umbrella Insurance

Without Business Umbrella Insurance (also sometimes called Umbrella Liability Insurance or Excess Liability Insurance ), you would have to pay the uncovered expenses out-of-pocket. Even if you carry General Liability Insurance for your business, without business umbrellainsurance you might face a repair, settlement, or judgment in excess of your coverage limit.

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