Even the best intentioned, and most professionally-run social services agencies make mistakes. They can also be targets for litigation because of services provided, or populations served. When an allegation is made – true or not – the costs can be overwhelming with the average between $35,000 and $100,000.
What's at risk?
The reputation of the organization and its leaders
Hard-won relationships with donors, volunteers and vendors
Employee
Morale
What's at risk?
The reputation of the organization and its leaders
Employee
Morale
Financial
Position
Hard-won relationships with donors, volunteers and vendors
Customer
Service
Customer
Service
Financial
Position
Claims facing health and human services organizations
Nonprofits are not immune to lawsuits just because their work is inspiring and their leaders and staff are passionate. Lack of knowledge, experience and decision-making skills can cause unwanted risks of claims from:
- Patients and customers
- Donors
- Vendors
- Creditors
- Attorneys general/regulators
- Providers
- Competitors
- Employees
Management Liability Insurance
Board and officers’ exposure is far-reaching, touching most decisions—from vendor contracts to employment to mergers and acquisitions. Management Liability Insurance can protect the financial health of the organization, and the personal assets of directors and officers. It often pays for legal fees, financial settlements, damages and civil penalties.
What it protects
Employment claims:
including discrimination, wrongful termination, wage-and-hour disputes and sexual harassment.
Mismanaged funds:
Accusations related to the management of the organization’s financial assets. This includes Medicare/Medicaid health care fraud and abuse.
Sexual harassment:
Accusations of verbal, visual and/or physical harassment by someone who serves on the board.
Vendor disputes:
Misunderstandings that arise from oral agreements, or contracts that are incomplete or vague.
Compliance issues:
Lack of adhering to industry standards/regulations or failure to properly file forms, reports, financial statements, maintain registrations or implement policies
Failure to perform:
A director’s obligations require that they act in good faith, protect assets and make informed decisions. Negligence or misconduct in these duties can cause liability.
Safeguard against new and challenging exposures
The ever-changing and challenging environment in which social service agencies operate demands that its officers and directors are knowledgeable, flexible and deliberate in their decision making. Relying on the liability protection experts at Trinity Asset Protection can give you peace of mind as well as financial protection.