Operating a business is mostly about managing risk
Business owners may not think of themselves as risk managers but that is precisely what they are. Businesses face many different risks, but if you have employees, one of your biggest risks is related to employee lawsuits.
Employees regularly sue employers for many different reasons. Some include discrimination, failing to provide a harassment free workplace, and most commonly being injured on the job.
When a Texas employee is injured on the job they have two choices. First they can elect to have your workers compensation carrier pay for your medical bills and lost wages, or they can elect not to receive workers compensation benefits and sue you instead. Most employees who are legitimately injured elect to use workers compensation.
PEOs have multiple ways to protect you from lawsuits
First, PEOs provide workers compensation coverage for all your workers that have a co-employment contract between you, the employee, and the PEO. As soon as you know about a loss, you notify the PEO who immediately assigns a workers compensation expert to help handle the claim. They will likely contact your employee and make sure they receive immediate and appropriate care for their injuries. They will follow the case and insure the injured employee is receiving the medical care they need as well as managing the associated costs.
Safety programs and an employee manual
Second, most PEOs help you identify areas of risk in your business that are both safety based as well as human resource based. They will create an employee manual for you that meet the standards of all the applicable Texas and federal laws your company must follow in order to be in HR compliance.
Third, most PEOs will do an onsite safety inspection with you to identify any areas of concern that need to be addressed.
Employer Practice Liability Insurance
Lastly, most high quality PEOs will provide an Employer Practice Liability Insurance ( EPLI) policy that helps protect and defend you from employee lawsuits such as discrimination, wrongful termination, racial or sexual discrimination, and similar types of lawsuits. This coverage should be provided as part of the basic part of a PEOs service.
Employee lawsuits have been increasing in recent years and can distract you from your business as well as cost you tens or hundreds of thousands of dollars. Texas PEO Group works with PEOs that typically provide $2 million or more in EPLI coverage.
If your business doesn’t carry worker’s compensation insurance and has employees, doesn’t have an employee and safety manual, and doesn’t carry EPLI, call us and we can discuss how a PEO helps significantly reduce your financial risk from employee injuries, discrimination lawsuits and other types of employee lawsuits.
For more information please call us at (512) 697-9509 or complete our online form.