employment liability insurance essential

Posted on: October 27, 2014 by Care Providers Insurance

Why Employment Liability Insurance is Essential for NonprofitsWhy Employment Liability Insurance is Essential for Nonprofits

It’s easy to assume that in the nonprofit world, lawsuits are rare. Nonprofits are amongst the most morally appreciated businesses out there. However, just like any business, they do face risks. Some of these risks come in the form of a disgruntled employee, a perceived wrong doing to an employee, or unfair hiring practices, among other reasons. These types of lawsuits would fall under employment practices liability (EPL). So why is employment liability insurance essential for nonprofits?

Nonprofits hire many different types of employees, some of those being volunteers. Even though volunteers, interns, and any other unpaid help may not be “official” employees, they may still have a case against your client’s nonprofit if they think anyone on the nonprofit’s staff discriminated against them in the selection process, or even if they were let go.

Not only are nonprofits just as susceptible to these types of claims as any other business, they may be even more vulnerable, giving that they typically operate on a strict budget and do not have funds to provide training for employees or volunteers on what is appropriate workplace etiquette. Also, nonprofit employees and volunteers typically will range in age and backgrounds. As a result, older workers may have a more “old school” way of doing things, and may offend a younger coworker as a result, even if unintentional. If the offended employee decides to sue though, the cost to defend the nonprofit could be detrimental to your client, even if the charges are unfounded.

Understanding the basics of insurance for non profit organizations is essential for your clients, as well as for you. At Care Providers, we are committed to helping you place various coverages, including employment practices liability and more, for your nonprofit clients. Our mission is to provide coverages tailored to meet the unique needs of this market segment. Please contact us today to learn more at 1-800-970-9978.

Posted in: Employment Practices Liability