Nonprofit Insurance Program

Prevention Is Your Best Protection

By Kathi Fuhrman
January 05, 2015

The current economic downturn has increased fears of employers. Thus is because as the numbers go up, so too does litigation against employees by disaffected former staff seeking redress for matters justified and unjustified relating to their loss of work. Therefore prevention is your nonprofits best protection.

Employment Practice Liability Insurance (EPLI) is available to employers to assist them to both respond and defend claims by staff for employment related matters

Typical claims

Wrongful dismissal

Breaches of employment discrimination laws

Claims of harassment including sexual

Employment contract infringements

Wrongful demotion

Negligent employee evaluation

Deprivation of career opportunities

Other aspects of an EPLI policy include:

Defense costs

Third Party Liability

Independent Contractor coverage

Claims involving arbitration

The amount of coverage depends on individual policies and it is essential to check you have the exact cover you need before taking out a policy.

Once you have decided on the cover required you discuss the availability and make up of EPLI coverage for your organization. Non-Profit organizations can often have EPLI added on to their Directors and Officers Liability coverage for little or no additional premium.


In good economic times or bad, having solid HR practices will help reduce your chances of a claim.

However, prevention is your best protection and the knowledge you have the EPLI coverage you need. Think of the HR procedures as your prevention and the EPLI coverage as your protection; it will be very unlikely you’ll ever need to make a claim.

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