January 30, 2013 One of the most difficult aspects of being a small-business owner is having to fire or lay off employees. Even if it doesn’t come as a surprise, it's still shocking, and more so in a job market where it can take well over a year to find a new job. It's difficult to know how someone will react when learning they're out of work.
Some former employees respond with bad behavior: taking proprietary information, deleting important data or even causing property damage. Others choose to file a lawsuit against their former employers for wrongful termination. This could lead to an expensive settlement or an even more expensive trial.
One way to mitigate the costs of these risks is to purchase an insurance policy that protects your company against the actions of terminated employees. These policies can cover the cost of legal counsel and a settlement.
Read the full article at the Hiscox blog.
Read more Finance Watch articles.
The Employees Strike Back: What to Do When Fired Workers Retaliate
Former employees can make life very expensive for business owners if the right protections aren't in place.