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Why You Should Consider Employment Practices Liability Insurance For Your Business

By Kathi Fuhrman
October 10, 2014

 

Why You Should Consider Employment Practices Liability Insurance For Your Business

 

It is no secret that we live in a highly litigious society today. There is a growing population of individuals who are less than forgiving when innocent mistakes are made.You could take on all the responsibilities of your organization to minimize liability but that would likely cause your demise.You cannot avoid having others carry the responsibilities that must be borne by others. Of course, this opens up another vulnerability for you and your nonprofit organization. Delegating responsibility also means that your employees might mistakes that negatively your company.

Insurance companies market a number of employment practices liability insurance and at least one of them should suit you very well. Check with your commercial lines insurance carrier for a listing of products or a referral to a reputable insurance carrier than can assist you.

Why should you consider such insurance?Let’s look at a practical example: You have to fire an employee for insubordination. This employee has access to sensitive data such as credit card information and sells a list containing hundreds of credit card numbers to an overseas third-party.Millions are charged on these accounts. Your subscribers decide to come together to sue your nonprofit for damages.  A good liability insurance program can be an effective shield against great loss.

This may seem like an insurance product you can live without, but it only takes one lawsuit to tank your organization.  The cost for such a product is relatively inexpensive and can be one of the best investments you can secure for your nonprofit organization.

 

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