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My wife is planning to help a small insurance agency that her son works for in hiring some office staff and new agents.  She has a background in Human Resources in State farm's Corporate Headquarters where she served as a secretary.  One of her duties was to read resumes and narrow down candidates for job interviews.  She plans to do that for this insurance agency and also conduct interviews.

My concern is that the agency is small and relatively new and does not have liability insurance to protect her (and my) assets in the event that a lawsuit is initiated and results in a successful judgement for damages against her.  I've sought advice from Frank Magill and received wonderful help from him.  The bottom line is that to be safe we should obtain employment practices insurance.

I'm asking your advice on what insurance firms to contact for affordable insurance rather than Mr. Magill because your background sounds like you would have more experience relevant to this question.

By the way, the insurance agency is planning to pay her for her services.  She has been volunteering with no pay up to now and was instrumental in hiring an administrative assistant/receptionist and a telemarketer.  But she will only be making in the neighborhood of $10/hr, so very expensive insurance would not be practical.

We do not carry this insurance and I do not recommend it for any company under 100 employees. If you have a good HR person you do not need the insurance. The only way you will be sued is if someone is discriminated against and you have a small chance of that.

This type of insurance is very expensive and seldom used. If it is a big problem than have the company use a temp agency to get it's workers instead of your wife. a temp agency will screen, interview and if you don't like the person send another person. If you like the person you pay the temp for their term and than you hire the person on. The temp agency takes the liability.

This type of insurance is most generally used in banking and accounting where large sums of money are involved. I have been in Human Resources for over 30 years and have never been covered or known any other Human Resource professional covered under this insurance.


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Shirley McAllister, CPP, PHR


I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).


30 years in Payroll and Human Resources

SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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