By Dawn M. Fernandez, CAS, CLP
Non-profit organizations rely heavily on their employees and volunteers to carry out their missions. To protect these individuals and your organization, it’s essential to have the right insurance coverage in place. This blog post will delve into two critical coverages: workers’ compensation and employment liability insurance.
Workers’ Compensation Insurance
Workers’ compensation insurance provides medical benefits and wage replacement for employees injured on the job. Key considerations include:
- Volunteers: While volunteers are generally not considered employees, many states require non-profit organizations to cover them for workers’ compensation.
- Officers: Officers may or may not be covered under workers’ compensation, depending on their role and the specific laws in your state.
- Deductibles: While deductibles are not common in workers’ compensation insurance, some states may allow them for certain types of claims.
Risk Management Tips:
- Safety training: Provide regular safety training to employees and volunteers to reduce the risk of workplace accidents.
- Workplace inspections: Conduct regular inspections to identify and address potential hazards.
- Ergonomic assessments: Ensure that workstations are ergonomically designed to prevent injuries.
Employment Liability Insurance
Employment liability insurance protects your organization from claims of discrimination, harassment, or wrongful termination. Key considerations include:
- Volunteers: While volunteers are generally not covered under employment liability insurance, it’s essential to have policies in place to prevent and address any issues related to their involvement in your organization.
- Officers: Officers may be covered under employment liability insurance, depending on their role and the specific terms of your policy.
- Deductibles: Deductibles are common in employment liability insurance and can vary depending on your organization’s size and risk profile.
Risk Management Tips:
- Anti-discrimination policies: Develop and implement clear anti-discrimination and harassment policies.
- Training: Provide training to employees and volunteers on these policies and their importance.
- Complaint procedures: Establish a formal complaint procedure to address concerns promptly.
Non-profit organizations can encounter a variety of claims related to workers’ compensation and employment practices liability. These claims may include workplace injuries, illnesses, or fatalities; discrimination allegations; harassment complaints; wrongful termination suits; and failures to accommodate individuals with disabilities. Additionally, non-profits may face claims related to wage and hour disputes, such as unpaid overtime or minimum wage violations.
By understanding the importance of workers’ compensation and employment liability insurance and implementing effective risk management strategies, you can protect your non-profit organization and its employees while fulfilling your legal obligations.
Dawn Fernandez has a strong foundation in technology and education, and has dedicated her career to empowering individuals and organizations. Her expertise in adult training, coupled with her understanding of legal structures, has equipped her to provide tailored solutions and exceptional support to non-profit agencies. As a Senior Account Manager specializing in insurance coverages for these organizations, she is committed to helping them navigate the complexities of the insurance landscape.
In addition to her professional role, she is passionate about sharing knowledge and insights through content creation. Her blog provides valuable information on insurance topics, empowering individuals and businesses to make informed decisions.