Be sure one of your most important HR needs is covered.

Every organization faces a variety of risks. Compounding those are the potential legal consequences if something goes wrong. Insurance provides a means to minimize the financial cost if your business faces scrutiny by regulators or is found liable for non-compliance in a matter. It’s part of a sensible risk management strategy.

There isn’t a simple answer to this. A lot depends on your type of business, where it’s located, the number of people you employ and the benefits you provide or offer, for example. That’s why it’s best to rely on the expert advice of an insurance partner who understands compliance issues and can ensure that your interests are protected.

Financial penalties are the foremost concern of most organizations, but there are other potential outcomes you need to understand. They range from day-to-day business interruption while dealing with a compliance matter to possible reputational damage that could also have lasting consequences. In some cases, too, there is the risk of imprisonment for individuals who are found liable for deliberate or repeated acts of non-compliance.

At a minimum, an effective program should include a committee or person whose responsibilities include compliance matters, written policies and procedures, education and training within your organization, established lines of communication, monitoring and auditing practices, and enforcement of standards through well-publicized disciplinary guidelines. An effective program is one that covers each of those elements and reflects a commitment to excellence in their execution.