Every business must follow federal, state and local laws. Failure to follow these laws can create risk and liability for your business. Your business insurance may respond to these depending on the claim or action brought as a result of failure to follow the law. Business Owners Package policy, commonly called a “BOP” contains many of the insurance coverages needed by most small businesses.
Important business laws
Employee Personal Records – As a business you may be required to make former and current employees’ personal records available for inspection.
Undocumented workers – U.S. law makes employers a central player in carrying out immigration restrictions. Every worker must have proper citizenship documentation. You may be subject to civil and criminal penalties for hiring undocumented immigrant workers. Civil penalties range from a minimum of $375 per unauthorized worker for a first offense up to a maximum of $1,600 per worker for a third or subsequent offense. If you are found to have engaged in a “pattern and practice” of hiring undocumented workers, then you can be fined up to $3,000 per employee and/or imprisoned for up to six months.
Workers’ Compensation – If you have employees you are required to carry workers’ compensation insurance covering workplace injuries.
Equal pay for performance – The Equal Pay Act of 1963 requires equal pay for equal work within the same establishment regardless of the employee’s gender.
OSHA – Federal laws require employers to maintain a safe working environment. OSHA prohibits employers from discharging employees solely because they file complaints or institute proceedings under OSHA.
Remember that commercial insurance, if written properly, can cover some of these issues. We recommend you call our office for a review of your business insurance program. US Select Insurance is an Independent Insurance Agency specializing in writing a complete range of insurance products from Business/Commercial to Personal. Our staff is committed to providing unsurpassed customer service, excellent products, and affordable premiums to our clients.