Does My Nonprofit Need Employment Practices Liability Insurance?

Does My Nonprofit Need Employment Practices Liability Insurance?Could your organization benefit from EPLI coverage?

Employment practices liability insurance (EPLI) is generally used to help protect businesses from potential lawsuits that accuse a business of using inappropriate employment practices. For most for-profit businesses, this is a vital part of coverage. But what about nonprofit organizations?

What is EPLI?

Employment practices liability insurance offers a broad range of protection against lawsuits that may arise from a business’s decisions and actions. Some examples of incidents that a policy might cover include:

  • Discriminating against an employee or a potential employee
  • Wrongful termination
  • Fostering a hostile work environment
  • Allowing sexual harassment to occur in the workplace

Does my nonprofit need this insurance?

Most nonprofit organizations can benefit from EPLI coverage. Nonprofits that employ people are employers, and as such, they can be sued for using discriminatory or illegal practices just as businesses that employe people can. Nonprofit status typically doesn’t protect an organization from employment-related lawsuits. That being said, nonprofits should consider this coverage if they have employees or volunteers.

Volunteers can sue if they feel that their rights have been violated. Below are some examples where a volunteer might decide to sue a nonprofit organization for discrimination or illegal practices:

  • A nonprofit unfairly prevents someone from volunteering
  • An organization’s volunteer coordinator illegally discriminates against certain volunteers
  • A nonprofit did not take action against a volunteer’s claim that they were sexually assaulted while volunteering

Whether you have volunteers on a regular basis or as a one-off favor, be sure to consider getting this coverage.

Are you looking for more ways to protect your nonprofit? Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298.