Approximately 5% of the U.S. civilian workforce is made up of unauthorized immigrants, according to recent estimates from the Pew Research Center. That translates to more than eight million people.

Many businesses assume they have nothing to worry about when it comes to hiring foreign workers. But because the rules for legally doing so have become complex and restrictive in today’s political environment, employers face many obstacles and potential pitfalls in this area.

Your commercial clients are understandably concerned with their bottom line. Sometimes, whether intentionally or unintentionally, they may hire workers who are not legal citizens. If an employer’s hiring processes are too relaxed or they fail to invest in the proper insurance coverages, they could end up facing costly fines, potential lawsuits and possible reputational damage.

Share these five tips with your commercial clients regarding hiring foreign workers:

Develop strict hiring standards. Remind your clients that the best defense is good offense. It’s better to find out in the hiring stage that an applicant isn’t here legally, than to find out years down the road as the result of a pending lawsuit or investigation. A structured hiring process makes it less likely that an undocumented worker will slip through.

Utilize E-Verify. Encourage your clients to enroll in E-Verify—it’s a free tool that can help them spot suspect applications by comparing an applicant’s Form I-9 to data held by the Department of Homeland Security and the Social Security Administration.

Understand workers’ rights. Many employers who hire undocumented workers intentionally fail to realize that these workers are often entitled to the same benefits as documented workers and citizens. In addition to federal requirements, rules regarding workers’ rights change frequently and vary by state.

Reevaluate their commercial insurance coverage. Talk to your clients about evaluating their business insurance and liability limits. EPLI in particular is a must for any business that frequently hires foreign workers. And make sure you emphasize the importance of securing coverage before an incident or lawsuit occurs. Encourage them to think about their commercial insurance in the same way they view health insurance and pre-existing conditions—once a claim is filed or a lawsuit is in progress, you cannot backtrack and obtain the coverage.  

Provide recommendations. Chances are you or someone you know can provide a recommendation for trusted business sources related to hiring processes or, in the worst-case scenario, wrongful termination lawsuits. Don’t just be an insurance agent—be a valuable business partner.

Despite your clients’ best efforts, they may still hire an undocumented worker accidentally. There’s not much they can do to circumvent the government-imposed fines, but the right insurance solutions can help them avoid paying out of pocket for workers compensation or expensive legal fees.

Remmie Butchko is CEO of Georgetown Insurance in Silver Spring, Maryland.