Pollara, an independent public opinion and market research firm, recently conducted a survey of 451 for-profit companies in the United States. 90% of these companies had annual revenues of less than $25 million.
About 50% of the executives surveyed felt their firms would be adding jobs soon. More than 10% said they anticipated a major acquisition in the near future.
When asked about what they thought were the events that could cause the most financial impact on their operations, 36% of respondents believed that an employment practices liability (EPL) lawsuit (wrongful termination, demotion, negative evaluation, discrimination, etc...) would cause their respective company the greatest financial damage. 16% of the respondents believed an EPL charge would be levied against their companies in the next year. 21% had experienced such an event in the last five years totaling as much as $750,000.
Of the executives surveyed, 54% felt that employees would steal company funds or other company assets. This represents an increase of 24% over a similar study conducted just five years earlier.
These are real fears expressed by companies that aren’t huge by industry standards. These are everyday companies, many not unlike your own company. These threats are real and should be addressed by every business with employees. The exposures detailed in this article can be covered with the proper insurance policy - whether it's employment practices liability insurance or employee dishonesty coverage for a rogue staff member that’s skimming your bank account. If you’re concerned, please give us a call. We’re here to help!