I realize that running a self storage business is not easy when you’re mostly trying to rent units, but self storage facility owners need to also avoid legal pitfalls to make sure they are complying with all of the laws involved with having employees. This article will discuss a few topics about employment law and the risks of liability.
What the risk-management process lacks in excitement it more than makes up for in importance. Since the absence of an effective risk-management plan can undermine even the most successful business, minimizing or eliminating risk is the cornerstone of any profitable self Storage venture.
When developing a risk-management strategy, self storage facility owners typically focus on protecting against the most obvious source of potential liability to the exclusion of others. For self storage facilities, this often means risk-management focus is almost entirely on the physical site as well as the property stored on the premises for others, and any liabilities that may result if such property is lost or damaged. But there is another considerable exposure.
Consider this: An employee in your organization files a discrimination lawsuit alleging she was not promoted because of her gender. You’re confident the promotion went to the better-qualified candidate and have sufficient documentation to support this decision. Still, having to defend your company against her claim in court could be costly; legal fees might seriously deplete your business’s cash reserves, perhaps even lead to bankruptcy.
Such a scenario is quite possible in today’s increasingly litigious business climate, in which even the most proactive employers can find themselves in violation of one of the many employment laws governing the workplace. In fact, according to the Equal Employment Opportunity Commission (EEOC), the likelihood of experiencing such a scenario is greater now than it has been in the last decade.
Although a precise explanation for the recent surge in employment-related charges may not be available for quite some time, it is possible that the struggling economy may play a significant role.
In any event, the result for business owners is the same: a significantly increased risk of exposure to employment-related liabilities that can push already struggling businesses over the edge. That’s why EPLI and simply minding your state’s employment laws has become an almost necessary part of a Self Storage business’s insurance umbrella.
This is where a great attorney and insurance agent can more than prove their worth. If you haven’t implemented a risk-management program in your self storage business, it’s time to begin the process.
And be certain to watch all four videos in our series on how to avoid the four most common legal pitfalls in self storage to keep yourself safe, and retain the hard earned money your facility earns.