Employment practices liability insurance can help businesses protect themselves from employment-related claims and lawsuits. This insurance, however, isn’t just for organizations needing business insurance. If you run a nonprofit organization in Northampton, Massachusetts, it may be wise to protect your nonprofit from covered claims with a policy.
Employment Practices Liability Insurance Provides a Host of Protections
Employment practices liability insurance provides a host of protections against many employment-related allegations and suits. As with any insurance policy, coverages are policy-specific. Some common allegations that a policy might cover include wrongful termination, discrimination, unfair hiring, hostile work environment, and sexual harassment lawsuits.
These policies may extend coverage to the business or organization insured, as well as its officers, directors, employees, and possibly volunteers.
Non-Profit Organizations Need Protection
These are risks that businesses in Northampton face every day, but allegations like these aren’t limited to for-profit companies. Without the proper insurance, your nonprofit organization may be just as exposed to an employment-related lawsuit as a for-profit business.
In fact, your organization in some ways may be more at risk, because allegations can come from both employees and volunteers. For instance, a volunteer may claim that your nonprofit organization:
Unfairly stopped them from volunteering because they were handicapped
Discriminated against them in the volunteer-selection process because of their race, creed, color, or origin
Treated non-disabled volunteers more favorably than disabled volunteers
Turned a blind eye when a volunteer coordinator made unwanted sexual advances
Just as these claims can be made by employees, they can also be filed by volunteers -- and your nonprofit organization needs to be protected from both sources of potential allegations. Whether a volunteer works with your organization one hour a month or 40 hours a week, they could make an allegation. Thus, each volunteer your organization brings in (or condisers) increases its risk.
Any employment practices lawsuit can be devastating, especially for non profits that rely on donations and operate on tight budgets. Depending on the nature and severity of a claim, the cost of legally defending an organization can quickly add up. Moreover, if found guilty, settlement amounts can be large for the most serious employment practices violations.
An insurance policy can help you protect the non profit that you’ve poured so much energy and so many resources into. Without adequate coverage, just one claim could reduce or even destroy all that you and others have worked toward.
Find an Employment Practices Liability Insurance Policy in Northampton
There isn’t any one employment practices liability insurance that will meet all companies’ and nonprofits’ needs. If you have a nonprofit in Northampton, Massachusetts, let a friendly agent help you find a policy that meets your organization’s individual needs. A local independent agent would be happy to go over the specific coverages that these insurance policies offer with you, so you can pick the right one for your non profit.
This material is for informational purposes only. All statements herein are subject to the provision, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy.