Human resources (HR) is an essential function for companies, but it also comes with liability risks. At Bowen, Miclette & Britt, we help directors and consultants find the coverages they need to address these risks and limit losses.
Why Do Human Resource Directors Need Insurance?
Human resources directors and consultants are in high demand as more companies want to know how to provide better benefits for less money. While these consultants can provide valuable insight for attracting and retaining more employees, failure to comply with employment regulations can lead to lawsuits.
HR directors need insurance coverage to prepare them for these potential risks. Without coverage, professionals may need to pay extensive costs out of pocket that can be challenging to recover from. While HR directors often are not liable, there are cases where they are at risk. Some scenarios include:
- An employee blames the HR director for not doing their job, pointing to a negligence lawsuit.
- An employee targets an HR director during an unlawful termination for their involvement in the HR concerns.
- An employee sues the messenger of bad news, as an HR director may be easier to target than a higher profile role.
Management Liability Insurance
Insurance Coverages for Human Resources
Human resources managers and directors can carry a range of coverages to protect them from liability claims. These coverages include:
- General liability: These policies cover any third-party risks that occur in your office. These risks may include a client falling and sustaining an injury or libel, slander, and copyright lawsuits. Many commercial leases will require this coverage.
- Professional liability: Professional liability or errors and omissions (E&O) protects HR directors in the case of a performance mistake or oversight. A common scenario where this might apply is the failure to comply with employment regulations.
- Workers’ compensation: If you run an HR consulting firm, state laws will require you to maintain a workers’ compensation policy. This coverage addresses any medical costs incurred from employee illness or injury on the job.
- Fidelity bonds: Also known as employee dishonesty bonds, these coverages reimburse an employee who steals from a client.
- Cyber liability: Human resources professionals are responsible for high volumes of sensitive information. Cyber liability protects these professionals in the event of a data breach or cyber-attack.
The Advantages of BMB
Bowen, Miclette & Britt can identify the ideal coverages to protect against liability claims, from HR directors to independent consultants. As one of the top 100 brokers in the United States, BMB applies expertise and experience to our brokerage services. HR directors can gain the comprehensive coverage they need for risk mitigation and loss control.
We take a consultative approach to insurance by building trusted relationships with every client. Our team is available to answer questions as they arise, and our service portal makes assistance accessible and convenient.
Comprehensive HR Director Coverage
BMB provides comprehensive brokerage services for HR directors to mitigate risks, control losses, and prepare for liability claims. Our commitment to service, vision, accountability, and knowledge allows us to represent client needs thoroughly and shift coverages as their requirements change. Reach out to BMB today.
