During the summer of 2009, New Focus HR received a telephone call from the Business Manager at a telecommunications company with 16 employees. She asked if we had the ability to assist her company with the development of an employee handbook. She stated that the company’s insurance broker had informed her that if they implemented an employee handbook that they would receive a discount from their insurance carrier on their employment practices and liability insurance (EPLI) rider under their commercial liability policy. New Focus HR was able to assist with the development and implementation of a new employee handbook. At the end of the project, the Business Manager let us know that the amount that her company would save during the first year was almost ½ of the cost of the employee handbook and that she looked forward to seeing even greater savings during the second year.
Upon further investigation by New Focus HR, it was found that several EPLI carriers are offering a discount to those companies who 1) have a compliant employee handbook and 2) provide anti-harassment and discrimination training to their employees at least every other year. The carriers have found that companies who are proactive in their approach with these issues and with employees have lower claims rates under the EPLI coverage compared to those who do not. Thus, they are incentivizing employers who are proactive vs. reactive!
Written By: Kristen Shingleton, M.B.A., CCP
President, New Focus HR