But I thought I was doing so well!

I’ve been here for 30 years. You’re just telling me this now?

Susan comes in late every day, and she’s never been written up. What gives?

Let’s face it: If you’re a business owner or a manager, employee performance appraisals can be uncomfortable. No one likes to receive a “surprise” evaluation that they’re not performing well. What’s more, if you ignore a small issue with an employee now, it could eventually snowball into a bigger problem later… at worst, it could result in an employment lawsuit.

5 WAYS TO ADDRESS POOR PERFORMANCE WITH AN EMPLOYEE

Having an established and documented employee performance review can help your business avoid costly discrimination lawsuits. If an employee is underperforming, here’s how to handle it.

• Be direct and honest. First things first: A poor performance review should never come as a “surprise.” Good managers address poor performance directly when it happens—and always with transparency and empathy.
• Be consistent. Consistency is key to avoiding claims of discrimination. Make sure you’re holding all your employees to the same standard. For example: If you discipline a low-performing employee for being late, don’t look the other way if a high-performing employee comes in late. (Related: Are you covered when an employee claims harassment or discrimination?)
• Keep it objective. Hold your employees to an objective standard that they know and have agreed to—for example, an attendance policy or employee handbook. Ensure there’s a legitimate business reason for discipline and avoid the temptation to provide overly subjective feedback.
• Write it down. Document every action you take during the disciplinary process, including verbal warnings. Writing it down gives you credibility and lets the employee know the specifics of how to improve their performance and what consequences are at stake if they don’t. For serious or final warnings, ask your employee to sign and date the document and add a space for them to comment with feedback.
• Know when to ask for help. If you feel over your head, reach out to a trusted mentor who has handled employee conduct issues before. And if things get really complicated, contact a human resources or legal professional who knows the ins and outs of employment law.

HOW CAN I PROTECT MY BUSINESS AGAINST DISCRIMINATION OR HARASSMENT LAWSUITS?

Imagine a worst-case scenario: An employee sues your business for sexual harassment or discrimination (for example, on the basis of age, sex, race or disability). Unfortunately, these types of lawsuits do happen and even if the allegations are found to be groundless, responding to charges like these can cost thousands of dollars.

You can help protect your business by adding Employment Practices Liability (EPL) coverage to your business insurance policy. Most standard EPL insurance policies offer a measure of protection against lawsuits brought against your business by employees alleging wrongful acts (sexual harassment or discrimination) or wrongful termination. You can purchase and add the coverage to your business policy as an endorsement. Learn more about our custom solutions for business insurance.

A data breach is not something that just happens to mega retailers – small businesses are also at risk. From customers’ credit card numbers to employee tax information, it’s likely that your small business handles sensitive data on a regular basis. (Learn how to keep data safe in this related blog post.)

All it takes is one convincing phishing email or a stolen laptop for that sensitive data to get into the wrong hands. Here are five surprising things to know about small business data breaches – and how you can protect yourself.

DATA BREACHES: WHAT SMALL BUSINESS OWNERS SHOULD KNOW

1. They affect any business, large or small: In 2020, almost a third of data breaches involved small businesses, according to Small Business Trends. Larger businesses might have the money and resources to help them recover, but smaller companies face greater challenges in the recovery process.
2. They’re costly. If several records are compromised, you could easily be looking at hundreds of thousands of dollars in expenses. These expenses can include legal fees; costs to upgrade or replace your POS system (depending on the source of the breach) or even a forensic examination. Some of the more serious small business data breaches have led businesses to close. For those that do stay open, it can be costly to repair the damage to their reputation and restore customers’ trust.
3. They have multiple causes.  Small businesses can experience a data breach in a number of different ways. In 2020, 70% of breaches were caused by external sources. Phishing scams top the list. Phishing is a tactic scammers use to contact others by email, phone or text– acting as a legitimate institution – to lure them into providing sensitive data.  Another popular method for hackers is to install spyware to get into your system to steal private information.
4. They can take a while to detect. The complexity of today’s technology combined with the sophistication of many hackers can make a data breach fly under the radar for weeks or even months. It can be hard for a small business, lacking the resources that many big businesses have, to uncover a breach.
5. If it happens to you, take action and alert those involved. It’s important to let your customers and employees know what’s going on. Be transparent and be prepared to address any questions from affected individuals. Several states even require that businesses contact any individuals whose private, nonpublic information is exposed through a data breach. For trusted advice, read this guide to data breach response for business owners from the Federal Trade Commission.

PROTECT YOUR BUSINESS WITH BUSINESS DATA BREACH COVERAGE FROM ERIE

Having the right data security procedures in place can help reduce the risk of small business data breaches – but a data breach can still happen.

Here’s the good news: A business insurance policy from ERIE can help protect you with specialized coverage to get things back to normal.

In the midst of this pandemic, you may have found yourself among the 63 percent of Americans working from home. A recent Gartner poll predicts that 48 percent of workers will continue to work remote at least part time even when it’s safe to physically return to work again.

Of course, working from home has pros and cons. It also raises serious questions like what would happen if an employee becomes injured while performing work at home.

Workers’ compensation (often shortened to workers’ comp) laws and requirements vary by state, but generally, any business that has employees must have workers’ compensation insurance coverage. It helps cover medical care and lost wages for an employee who is hurt at work.

With many employees working from the kitchen table or the home office, it helps to know how workers’ compensation can kick in. (As always, talk to your local ERIE agent for questions about your specific policy.)

WILL WORKERS’ COMPENSATION COVER AN EMPLOYEE IF THEY GET INJURED WHILE WORKING FROM HOME?

If an employee is hurt on work premises, they’re typically covered by the employer’s workers’ compensation policy. Workers’ compensation provides coverage for injury or disease employees sustain in the course and scope of employment. It applies regardless of negligence, with workers’ compensation laws varying by state.

Most telecommuters are still covered under their employers’ workers’ compensation coverage, whether full-time remote workers or temporary due to pandemic stay-at-home orders.

“It’s important to remember that workers’ compensation insurance isn’t tied to a building,” says Leo Heintz, vice president of commercial products at ERIE. “It follows you wherever you go, subject to the policy conditions, while you’re at work.”

WHAT ARE COMMON INJURIES THAT CAN HAPPEN WHEN WORKING FROM HOME?

Common injuries telecommuting office workers experience include carpal tunnel syndrome; back sprains and strains; and slips, trips and falls. The injury or disease typically has to arise out of a work-related activity to be covered under workers’ comp.

“Injuries are possible even if you have a desk job,” Heintz said. “That’s why it’s important to practice the same good ergonomic activities at your home office as you do when at your regular office. Simple things like good posture and remembering to take time and stretch, or getting up and walking around, can make all the difference.”

Even when we’re told to maintain social distance, we need each other more than ever.

As the news of the coronavirus (COVID-19) continues, it’s essential to follow public health guidance from experts such as the Centers for Disease Control and Prevention and your local government to keep your distance and slow the spread. (Read more about how ERIE and our local agents are maintaining our commitment to serving you in our message on COVID-19.)

Beyond the health impacts, though, there’s also a community impact. Right now, things might feel lonely or uncertain – even scary. And that’s especially true for small business owners – in particular, those that have been instructed to close their doors.

From your favorite lunch spot to that funky art gallery, our local small businesses are a beloved part of what make our hometowns feel like home. We rely on them daily – and now, they need us. If you’ve got a little extra to spare in these uncertain times, here’s how you can help out your local small businesses.

HOW TO SUPPORT LOCAL BUSINESSES DURING THE CORONAVIRUS

1. Buy local whenever you can. When it comes time to stock up on pantry staples, think about supporting that mom-and-pop shop first. The American Independent Business Alliance (AMIBA) has fascinating data about how locally owned businesses generate larger “local economic multipliers.” Your support might make a bigger impact than you think.
2. Order takeout or delivery from your favorite local restaurants. Extra perk: No dishes.
3. Buy gift cards or gift certificates. Many places accept contact-free payment online or over the phone. Stock up now and treat yourself to a night on the town when this all blows over. For places you rely on regularly – for example, your hair salon – buy an extra service or two now if you can, since you know for sure you’ll use it in the months ahead.
4. Buy gifts for friends or family. Is it crazy to think about starting your holiday shopping in the spring? You’ll thank yourself later – and, hey, it’s something to pass the time! (Read our list of tips for safe online holiday shopping.)
5. Leave a generous tip. With lower customer volume, servers and bartenders might be making less than usual. If you have it to spare, throw a few extra dollars their way. (And don’t forget to tip the delivery driver!)
6. Buy merch or other gear. We get it – you can only order so much takeout, especially if you’re not getting your usual number of steps in. Think about buying a coffee mug, T-shirt or ball cap to show some local love. Buying merch can especially help touring musicians, who might have had to cancel shows in the interest of public health.
7. Tune in to live streams. With bars, restaurants, and other gathering spaces closed, gig workers like musicians might be out of work. Show your support with a like and comment on your favorite local band’s livestream. (And if they have a digital tip jar, send a few dollars there just like you would at the corner bar.)
8. Take an online class. Personal trainers, yoga instructors, and fitness pros might be out of work, too – and we all know it’s important to keep moving when you’re stuck at home. See who’s streaming and consider throwing them a digital tip as a thank-you. (Laundry piling up? Read our list of 7 must-know hacks to clean fitness gear.)
9. Buy some cool art. Websites like Etsy make it easy to search by location and find artists in your community – and you might be going stir-crazy to freshen up your space, anyhow. Some local artists might be doing “draw-alongs” or other livestreams. Add them to the list of folks who would appreciate a digital tip, too. (Keeping the kiddos occupied with art projects of their own? Read our list of 5 stylish ways to display children’s artwork.)
10. Leave a positive review. If you’re short on cash, boosting a local place’s reputation is worth its weight in gold. While you’re at home, type up a couple good comments for your favorite spots to leave on social media or search engines. (Get other ideas to pass the time in our list of 21 ways to beat cabin fever.)
11. Check with your local chamber of commerce or small business association. Local groups might be planning events, discounts, or promotions unique to your area. Get connected and see what’s happening in your neighborhood.
12. Pay it forward. If you’re fortunate to have some steady cash flow right now, remember that others might not. Consider treating the next person in line behind you – or making a donation to a charity that helps the less fortunate in your community.