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A non-profit needs Employment Practices Liability insurance – even if it has no paid employees

  • Employment Practices Liability covers not only actual but alleged acts of discrimination, harassment, retaliation and wrongful termination.
  • Employment lawsuits can be brought by employees as well as volunteers or third parties.
  • The average cost to defend an employment claim is $150,000. The financial ramifications of not having Employment Practices Liability Insurance can be crippling to the operations of a small non profit.
  • Non Profits are not protected under Commercial General Liability for employment lawsuits. Endorsements to a General Liability form for such coverage are generally inadequate and erode limits of liability.
  • An employer is more likely to have an employment claim than a General Liability or Property claim. Six out of ten companies have been named in a discrimination or harassment lawsuit in the past five (5) years.
  • Recent Supreme Court rulings have held that employees may win discrimination suits without direct evidence of an employer’s illegal intent.
  • Age discrimination lawsuits continue to be on the rise as the baby boomer generation ages and remains in the workforce.
  • The 1991 amendments to the Civil Rights Act give employees the ability to seek jury trials, damages for mental anguish and emotional distress, and obtain punitive damage awards.
  • Three out of five former employees sue their employers every year.
  • Approximately 550 employment lawsuits are filed every day in the United States.


This document does not amend, extend or alter the coverage afforded by the Policy. For a complete understanding of any insurance you purchase, you must first read your Policy, Declaration Page and any Endorsements and discuss them with your Broker. A specimen policy is available from an Agent of the Company. Your actual Policy Conditions may be amended by Endorsement or affected by State Laws.