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.