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Anatomy of an EmploymentAgreement--Inclu... > Anatomy of an EmploymentAgreement--I... - Pg. 100

Staffing Up 100 Rainy Days and Harassment Suits Always Get Me Down, or Why Buy Insurance As mentioned in Chapter 2,"First Steps," you need to find a good insurance broker and figure out what kind of insurance you should carry.Your state probably mandates that you carry certain kinds of insurance, like worker's compensation and disability, which are already pretty pricey.There are several other kinds of insur- ance that you should consider, particularly if your business has 15 or more employees (which usually brings you under more regulations), including, but by no means limited to: · Employment Practices Liability Insurance. This will protect you from lawsuits filed by employees or ex- employees for things like harassment. · Liability for employee acts. If your employees frequently travel around in cars on business errands, you may want to consider some kind of insurance to protect your company in case of an accident. · Intellectual property defense. This insurance covers your costs of defense against infringement claims. The key concept to understand about insurance is that it isn't just to cover the cost of any awards against you, it is to cover your costs of defending against claims. Plenty of employees try to shake down their employers, and the cost of defending against such suits can be astronomical. A solid employment agreement should include the following: · Commencement date . · Title and reporting structure . If applicable, state the employee's title and the title(s) of the per- son(s) to whom the employee will report. See sidebar on "Organization Charts" for a primer on creating a coherent organization. Note: the exercise of analyzing and elucidating the employee's duties and reporting structure carries the additional benefit of promoting logical organization charts and forcing management to take a somewhat global look at the company structure. · Duties and Responsibilities . Lay out the employee's duties and responsibilities with enough