Orlando Business Insurance: Hiring Missteps Prove Risky

Employment Practices Liability

Orlando Business Insurance: Hiring Missteps Prove Risky

Businesses everywhere this summer are getting a poignant reminder that working with contractors can sometimes come with unexpected risk exposures, especially when those temps are afforded access to privileged or sensitive information. The reminder comes from none other than the federal government itself, as the IRS contractors recently fell under investigation for their contract worker hiring practices. The Treasury Inspector General for Tax Administration (TIGTA) found that there were a number of contract workers who were improperly screened and awarded contracts that afforded them access to privileged taxpayer information. Under IRS policy, background checks are mandatory for contractors who work with sensitive and private data, which also includes employee and law enforcement data, if they are working with the IRS for more than six months.

The TIGTA reported that there were a number of instances where the required background check protocol was no filed which ultimately resulted five contract awards where without background investigation and twelve cases where contract workers began working before those checks were completed. In one instance the report also noted that a contract winning courier service gave a daily route to an ex-convict who served more than 20 years for arson. In another case where improper background protocol were followed, a contractor working on printing and mailing tax forms was given a disk containing 1.4 million taxpayer names, Social Security numbers and other personal information.

The IR’s prominent misstep serves are an example for and Orlando business working with contract and direct hire employees, about the importance of background checks and establishing thorough protocols for all hiring practices. Hiring is one of the most complicated areas any business faces. Between navigating the local and federal equal opportunity employment regulations to protecting your business from potential liability exposure, the right employment practices can make all the difference.

At Newman Crane, we understand the common and nuanced risks that Central Florida business owners face. That’s why we proudly offer a complete suite of Orlando business insurance solutions to help business owners navigate the hazards of operation. We can help ensure that your operation is protected from many common and specialty claims and liability exposures, from Workers Comp and Errors/ Omissions to Employment Practices Liability exposures. Give our Orlando business insurance specialists a call today at (407) 859-3691 to learn more about all our offerings and the specialty industries we serve.