EPL Best Practices


Management training, vulnerability audits and social media policies are among the best practices that can reduce a nonprofit organization’s exposures to employment practices liability claims.


“The more you know your carrier, the more you know the policy that you are writing for your client, the more that you will know that these risk management benefits are out there, and it really behooves employers to take advantage of them.”


Wendy Mellk, Jackson Lewis


The greatest exposure associated with employment practices liability for a nonprofit is not necessarily the damages owed to a plaintiff who wins a verdict. Rather, it is the fees that the defendant must pay to the plaintiff’s attorney. By employing best practices, nonprofits can go a long way toward reducing that exposure. Many insurance carriers offer risk management services that can be especially beneficial to small nonprofit employers.


One of the most important best practices is management training so that managers can identify potential problems. Many carriers provide training or give discounts for training as part of their risk management programs. Vulnerability audits that look carefully at workplace practices are another best practice. These are most effective when conducted by an attorney, because any problems that emerge will be covered by attorney-client privilege and not subject to discovery in a lawsuit. Social media policies and practices must be evaluated carefully.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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