By Katie Kulp

Posted

When news and social media are publicizing one frivolous lawsuit after another, it’s reasonable for businesses to be concerned about their legal standing.  Though background checks are vital to every business,  there are times that the screening process could result in legal complications. Fortunately, a good insurance policy should protect you in many ways. Here’s how.

Insurance can protect you from fines

The regulations surrounding background screening processes are changing rapidly. Already, many businesses across the nation have been held legally (and financially) responsible for the misuse of background check information. In fact, since background checks are regulated by several government entities, your business could face fines even if you are not taken to court. But, if your insurance policy covers background screening violations, you can feel confident that damages will be minimal.

Violations can occur through no fault of your own

Even when your company follows every regulation, collecting and storing personal information on your candidates can be tricky. Just months ago, the country was shocked to hear that a data breach at Equifax resulted in a leak of over 143 million credit reports. Anytime personal data, such as background histories, is collected and stored by your business, there is a risk of a similar breach. If private information is leaked, your company could be fined even if it is not directly responsible for the breach.

Fortunately, data leaks are avoidable. To eliminate privacy breaches at your business, restrict who has access to the personal information of your present, past, and potential employees. In fact, personal information should never be shared with someone who is not directly involved in the hiring or management process to eliminate the possibility of wrongdoing with the information and it resulting in harm to a consumer. For those rare occasions when the unexpected occurs, a strong insurance policy can help minimize the damages.

The first step is prevention

With so much at stake, businesses cannot afford to take violations lightly. Your candidates deserve to have their privacy respected and protected. At Chane Solutions, we understand what it takes to protect your business from legal risk. Our background screening professionals can help guide your business through the hiring process while guaranteeing compliance with all recent regulations. In addition, our services are fully customizable to meet your company’s needs. Contact us today to start crafting a tailor-made screening process for your business.

 

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