How Your In-House Policies Create Potential Liability

How Your In-House Policies Create Potential LiabilityMaintaining protective insurance for your non-profit business.

Many companies neglect or overlook revising their vacation or paid-time-off policies, which can be a big mistake. Depending on your jurisdiction, a poorly drafted vacation/PTO policy can carry significant potential liability. If these policies are unclear, or unevolved, the employees may be able to claim that they are entitled to pay for their accrued but unused vacation, upon termination.

If there is no clear statement that accrued but unused vacation or PTO is forfeited upon termination, then employees can potentially claim payment. In addition, the company may be left unable to correct these policies, and must be aware that the vacation, PTO, and sick days do not become payable upon termination.

Firstly, it is important to know your state and local laws regarding vacation/PTO/paid leave accrual, usage, and payout. Once reviewing the laws, you should look to your business policy to determine what exactly has been provided in the past, and whether or not you can correct these policies retroactively. Your company should try to tailor policies to reduce the excessive payout upon termination and to reduce the company’s potential liability.

So that your non-profit business is protected, no matter the circumstance, acquire all of your commercial insurance from Colorado Nonprofit Insurance Agency in Denver, Colorado. We suit insurance to your non-profit business needs, so call us today for a quote!