Every business that acts as an employer has the possibility of exposure to lawsuits from employees or former employees. We frequently hear from our doctors, “My employees love working here. They would never sue me.” But, the reality of running a business is everyone who employs workers runs the risk of being sued. Companies such as medical practices do not always have definite human resources policies and procedures, which leave them more vulnerable to litigation.
As an employer, you can put in place protections against employment practices lawsuits by implementing the steps outlined below. These steps may help prevent a lawsuit or claim in the future, and help protect your practice from potential financial hardships.
- Develop a human resources manual specific to your practice with clear policies and procedures. It is important that the manual contain your practice’s equal employment opportunity policy as well as an internal mechanism to complain about discrimination or harassment. You can download a customizable human resources manual on the CAP website by logging into the Member's Only section at www.CAPphysicians.com.
- Train supervisors in human resources procedures and policies and keep all policies in one place.
- Provide an employee handbook to all new employees and review policies and procedures with all new hires as part of an employee orientation.
- Keep your policies up-to-date by revising when there are changes in the law. Make sure your human resources manual reflects these changes.
- Prior to terminating an employee or if an employees has issues with your wage and hour or leave of absence policies, contact the CAP Human Resources Hotline at 213-473-8664 for a free consultation. It is also recommended you contact the hotline whenever you face discrimination allegations or employee misconduct issues.
- Purchase an Employment Practices Liability Insurance (EPLI) policy to protect you and your practice against any claims filed by disgruntled employees.
On average, 81 percent of employment practices liability claims settle for between $22,000 and $40,000, a significant amount for a small business. CAP physician members have a $50,000 defense only benefit provided by your Employment Practices Plan (EPP), with a $5,000 deductible for individual members. This EPP coverage would not pay for any settlements or fines and penalties.
CAP Physicians Insurance Agency, Inc. has competitive rates for EPLI coverage available exclusively for CAP member physicians. You owe it to yourself and your practice to get a quote. The agency stands ready to help you protect your practice. Contact us at 800-819-0061 or at CAPAgency@CAPphysicians.com for more information.
