How Can Your Client Proactively Approach Litigation?

How Can Your Client Proactively Approach Litigation?

When it comes to obtaining insurance coverages, whether it’s for Professional Liability or Employment Practices Liability (EPL), it’s important for your prospective clients to understand that no business is immune to a lawsuit. It’s a common misconception that a business won’t get sued, or if it does your client can handle the financial repercussions on their own.

The problem with having this reactive attitude rather than a proactive approach, though, is that businesses are often surprised when a lawsuit does occur, and of course the timing is never good, so they end up paying for it financially.

Whether it’s a current client of yours or a prospective client, there are steps you can have them follow to proactively approach litigation. These steps won’t eliminate their risk of facing a lawsuit, but it could better help them prepare for litigation should they face it in the course of their business.

The first thing a business owner or manager should do when it comes to preparing themselves for the possibility of a lawsuit is to review their documents. Personnel policies, procedures, and other human resources documents are key to any company’s employment practices management program. Along these same lines, companies should empower their management team with a basic understanding of employment law principles. In theory, a manager who is aware of the legally protected classes is less likely to make an off-hand remark that could be the basis of an employee discrimination claim.

One of the most important jobs for any human resources professional is to properly investigate employee complaints; just as managers should property investigate client complaints. According to legal experts, liability determinations are often tied directly to the adequacy of an employer’s investigation. It is true that accused employees or managers can be potential plaintiffs in a lawsuit, however without taking this proactive measure, companies won’t know what they are up against.

The above mentioned steps are just a few things your clients can do to proactively approach a legal claim or litigation. Companies should also always ensure they are hiring the best fits for their business, always keep their costs in check, and understand when it’s best to just settle. Doing this and protecting themselves with the right insurance policies is key to ensuring that a company will not be financially devastated in the event of a lawsuit.

PLRisk Advisors is a leading wholesale insurance brokerage covering the professional liability market. Our team of seasoned professionals has the depth and breadth of knowledge to help our agency partners secure the best quality coverage for their clients. Please contact us today to learn more about our coverages at (855) 403-5982