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Liability for Guests' Property, Safe Deposit Box Coverage Form K
Used mainly for hotels and business providing lodging facilities, this form from the Insurance Services Office (ISO) provides Crime coverage for the insured's legal liability from damage to or loss of a guest's property that is in a safety box located on the insured's business premises. Financial institutions are typically covered for this type of coverage under a Surety Association of America (SAA) form.
Insurance Industry News from ProgramBusiness.com
Prevent Recruiting LawsuitsMany key employees have their hands tied, whether through covenants-not-to-compete or confidentiality agreements. Plenty of companies would like to recruit these employees so that they can add value to their organizations at the expense of their competitor. However, they might easily find themselves recruiting a lawsuit in the process. Here are five steps to avoid this liability trap:
Review your recruiting process. Some companies go so far as to have one of their employees take a job with their competitor so that they can identify their superstars. The applicants then solicit these employees to leave their job. Other companies will hire recruiters and use traditional employee advertising methods. Courts tend to look unfavorably on unscrupulous recruitment practices.
Determine what baggage the employee might be carrying. Although some employers prefer to bury their heads in the sand, its better to know up front if the prospective employee has agreed to any contractual restrictions. The new employer should have this understanding memorialized in their offer letter (HR That Works users have a sample) and might even go so far as to send a letter or contact the previous employer to memorialize their understanding.
Consider their new job description. Previous employers, as well as the courts, will be most concerned if the new employee is put into the same position that they held with a competitor. If the employee isnt being hired for the equivalent position, their job description should define this distinction clearly. Are you hiring this employee so that they can take advantage of the knowledge gained at the previous employer, or are you hiring them to put their skill set and experience to work for you?
Make sure that the new employee signs your contract. After they come on board, they should sign your proprietary protection agreements and the like. The agreement should memorialize your understanding that theyre not taking the proprietary property of a previous employer or using it in their new job. You might also want to add language defining any liquidated damages if they try to pull such a stunt with your company.
Take a look at the track record of the previous employer in dealing with other employees whove been hired away from their business. Are they litigious? Do they even bother sending out a letter from their attorney? Experience tells me that a company that intends to pursue litigation in this area had better be prepared to handle cross-complaints and spend lots of money on attorney fees. Thats why many firms would rather bluff than litigate to enforce their employee agreements. For more information about the products and services offered by Don Phins Employer Advisors Network and HRThatWorks, visit http://www.donphin.com.
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