With a wave of millennial’s entering the workforce, companies have evolved to create a “new workplace” that attracts that demographic of talent. Common perks of the “new workplace” include modern decor, free snacks, unlimited vacation and beer on tap. While great for your employer brand, the reality of these new perks is increased liability risk to your business.
Beer on tap perk: Alcohol and work mix at more than just at the annual company holiday party. Now, it’s a welcomed part of company culture, but have you truly thought through the consequences? Social host laws vary widely from state to state, but rest assured you can be held liable civilly or criminally for providing alcohol that contributed to an accident. To mitigate this risk, you can do one of three things:
- Remove the beer on tap perk entirely
- Hire an insured vendor to supply alcohol and make sure there is an indemnification cause that will indemnify, defend and hold your company harmless for liability stemmed from alcohol related incidents
- You get your own liquor liability policy
Free snacks perk: Candy, fruit, vegetables and wraps are ready to fill the tummies of hungry employees, but what happens when those items spoil? Are you covered should an employee sue for food poisoning? How about on-site cafeterias? Do you cater these lunches? If so, do you have the proper insurance in place should a mechanical breakdown cause you to lose hundreds if not thousands of dollars in food? Your existing business owner’s policy should have spoilage insurance as an optional add-on. Have you spoken to your insurance agent about this risk?
Tech troubles: In the new workplace, working for a tech company can be seen as a perk in and of itself. Robust CRM systems are responsible for aggregating customer data, automating marketing campaigns to prospects and current clients, and managing other important aspects of a business. Are you covered in a robust cyber liability policy should your system get hacked? According to a recent research study by IBM Security, the cost of each stolen record will cost a company $141. Can you imagine multiplying that by 100,000 customers? That’s $141,000,00 in lost revenue. Most companies are not prepared for that large economic hit.
Employment Practices Liability: Hiring biases, subconscious or not, play a role in how and who you recruit for your business. Potential candidates can make assumptions as to why you made the decisions you made just by looking at who is currently employed by the company on Linkedin. Should they not get the job, you could be faced with a lawsuit. EPL insurance can help mitigate this risk.
Do you see a gap in your current insurance coverages? Give Brian Kilcoyne from H&K Insurance a call at 617-612-6515 or email him at firstname.lastname@example.org to discuss your options today!