Why Do You Need Employment Practices Liability Insurance for Your Non-Profit Organization?
- You’re covered for both actual and alleged acts of discrimination, sexual harassment, retaliation and wrongful termination. These types of lawsuits can be brought against a non-profit not only by employees but also by volunteers and third parties.
- Your non-profit organization can take an enormous hit if sued for an employment claim. Around 550 employment lawsuits are filed each year, with the average cost to defend such a claim exceeding $150,000. Approximately 3 out of 5 former employees sue employers every year, including non-profit organizations.
- Commercial General Liability insurance does not cover non-profit organizations against employment claims, and endorsements for such coverage are usually not adequate.
- Companies, including non-profit organizations, are more likely to have an employment claim filed against them than a General Liability or Property claim.
- Employment lawsuits have gone up 400% over the last 20 years, to the present level of over 6 claims per 1,000 employees each year. Employees may, due to recent Supreme Court rulings, win lawsuits without having to prove an employer’s illegal intent. Amendments to the Civil Rights Act also allow employees to receive both emotional distress and punitive damages.
Source: Kaplan Risk Services, Inc.