January 09, 2013

Employment Practices Liability: Would Your Non-profit Be Protected?

It’s important to understand that non-profit organizations are subject to the same types of employment-related claims that for-profit businesses face. In fact, it’s estimated that a business is more likely to be sued by an employee than experience a fire.

If your non-profit organization has volunteers, employees, or works with a third party in any way, you should consider the protection of adding an employment practices insurance policy.

Employment practices liability insurance (EPL), protects your non-profit organization in the event of allegations arising from:

  • Wrongful termination of volunteer
  • Sexual Harassment
  • Discrimination
  • Unfair hiring practice
  • Hostile volunteer/work environment

With more employees filing allegations against their employers, you need ask yourself if your non-profit would be protected if following were to happen:

A volunteer at your non-profit organization was overheard making inappropriate comments about a handicapped employee to other volunteers while working. The employee, after discovering what had been said about her, quit a few months later and sued the organization for allowing a hostile work/volunteer environment.

Your social service organization is growing and you’re looking to hire several new volunteers. After reviewing several applications, you select a handful of qualified applicants. Later, of the applicants files a lawsuit against the organization, alleging discrimination as the volunteers that were selected were all male.

Lawsuits similar to these examples happen to non-profits every day. Don’t make the mistake of thinking that your business liability coverage and umbrella policies will protect you. In fact, most general liability and umbrella coverage forms specifically exclude employment practices, so be sure your organization is protected with an EPL policy.

ProSight has partnered with Socius Insurance Services to develop the Community First program – a comprehensive program designed specifically for Non-Profit and Social Services organizations, and offers management liability products to meet the needs of your non-profit organization–including optional EPL coverage.

With Community First Nonprofit Solutions, you have access to resources to help you manage the many employment exposures to your organization, and reduce or prevent costly employment claims.