According to Clarence M. Kelley and Associates, a company that specializes in conducting background checks, more employers are being sued for inadequate screening of applicants. The law clearly shows that employers have a duty to screen employees. Kelley and Associates notes that the average award in these suits comes to $1 million.

More employers are considering implementing background procedures and that might be a wise decision. One out of every 47 Americans was either on probation, on parole, or in prison during 2000, and three out of four applicants falsify some information on their applications.

Considering these statistics and the legal implications of hiring potential security problems, background checks can form an essential component of risk management.

In addition to prevention measures such as background checks, maintaining the proper liability insurance coverage is critical to protecting your business. Call us for a review of this important coverage; we’d be glad to help you better understand what you have and whether the limits of coverage are reasonable. Ask us, too, about options for professional liability coverage.