Employment Practices Liability for Nonprofit, Childcare, Social and Human Services

What is Employment Practices Liability?

Employment Practices Liability (EPL) is coverage that is often paired with Directors and Officers (D&O). D&O helps protect organizations and board members from "management errors and omissions," claims resulting from managerial decisions that have adverse financial consequences.

Employment practices liability coverage can cover defense and claims awarded for employee discrimination, wrongful termination, failure to promote and other proposed wrongful acts committed by employees and volunteers.

It is a little known fact that employment practices liability claims occur more frequently than property claims. Recently, discrimination claims have been rising at a rapid rate. An example that most organizations see today is a volunteer of an organization getting fired for what he feels like is discrimination. The volunteer sues the organization and the company finds itself deep in litigation costs. These types of claims are very costly and take not only time, but also bring negative publicity to an organization. Understanding these risks and how to properly protect yourself and your organization can save your company from closing its doors completely.

Get an Employment Practices Liability quote for your nonprofit, social or human services.