4 Tips for Avoiding Lawsuits During the Hiring Process

Is your business looking to expand? If a pile of resumes has begun to build on your desk, it’s time to reevaluate your company’s need for employment practices liability insurance.

It’s unfortunate that we live in litigious age, where many business disagreements are settled in court. When businesses open their door to new candidates, they open themselves up to the potential for lawsuits stemming from accusations of discrimination and a wide array of other illegal practices. Here are four simple tips for minimizing your risks.

Tip #1: Know the Law

While it may sound like a no-brainer, many managers are not familiar with the long list of questions that are illegal to ask during an interview. Be sure to educate yourself and all of your hiring managers before scheduling your first candidate.

Tip #2: Make an Interview Record

After each interview, make notes about your findings during the interview. Similarly, if you decide to pass on a candidate, make a note about why you chose not to hire him or her. If a lawsuit is brought against you, it is much easier to show that you circled all of the typos on a resume than to try to recall why the fifth candidate out of forty-five was not the best candidate.

Tip #3: Keep Good Records

Your interview notes will do you no good if they aren’t properly maintained. Lawsuits often take months before you are made aware of them. If you dispose of your interview records the moment you hire your new candidate, you leave yourself open to trouble.

Tip #4: Maintain Your Employment Practices Liability Policy

Regardless of whether you broke the law or not, defending yourself against a lawsuit can be incredibly costly. Employment practices liability coverage not only provides financial coverage if a judgment is brought against you, it provides assistance with the cost of legal representation in order to fight the lawsuit.

Talk with the Experts

Employment practices liability coverage can be costly, but it can be worth its weight in gold if you are sued by a disgruntled employee or candidate. It is important to discuss your risks with a trained and trusted insurance professional. At Clemente Insurance, we work with you to fully understand your business needs, weigh your risk factors, and ensure that you have the proper commercial insurance coverage, including whether an employment practices liability insurance policy is right for you. Contact Your Insurance Experts at Clemente Insurance and Financial Services by calling (888) 995-9098.

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