Employment Benefits Liability for your Nonprofit, Social and Human Services

What is Employment Benefits Liability?

Employment Benefits Liability (EBL) is an insurance coverage that can protect nonprofit mangers, human resource workers and virtually anyone who handles the employee's benefits in the nonprofit from an errors and omissions claim. Errors and omissions simply means performing an administrative error like misplacing paperwork or incorrectly entering information. However, an EBL claim could also arise just from relaying incorrect information to a nonprofit employee about the benefits that they are receiving. For example, a manager might mistakenly tell an employee that her mother that lives with her is covered under the company's insurance plan when really she isn't. When dealing with insurance, pension plans or social security benefits, the smallest mistakes could create a claim that could close down your nonprofit organization for good.

Why nonprofit organizations should purchase EBL?

EBL coverage is often beneficial to organizations that have a decent amount of employees. The more employees and the more extensive the benefits package that a nonprofit gives, the more likely and expensive a claim will be. With that being said, it is incredibly easy for a small mistake like misspelling a name or address on insurance papers to occur and when that does happen, EBL can potentially cover all costs. It is worth the price; Rough Notes stated that, "the average judgement/settlement of these types of claims is $994,000" and you don't want to be stuck paying that! 

While EBL covers organizations from errors and omissions, the monetary side is usually covered by Fiduciary Insurance. Learn more about fiduciary coverage for nonprofits. 

Obtain an EBL and Fiduciary Insurance quote for your nonprofit, social or human services today!