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
Breaches of employment discrimination laws
Claims of harassment including sexual
Employment contract infringements
Negligent employee evaluation
Deprivation of career opportunities
Other aspects of an EPLI policy include:
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.