Management Liability Insurance for Nonprofits

For organizations working for the greater good, we help offer nonprofits protection for their assets and individual directors, officers and employees from expenses arising from allegations of wrongful acts.

Why Berkley Select

From risks like age discrimination, wrongful termination, and harassment, we know the actions of nonprofits are being scrutinized more than ever. For more than 30 years, employers across America have trusted Berkley Select to protect their assets and reputation. We offer industry-leading insurance coverages and risk management services for nonprofits.

Nonprofit Coverages

Directors and Officers Liability

Provides coverage for the leaders and the organization from allegations of failing to act in the best interest of the organization.

Employment Practices Liability

Provides coverage for the leaders and the organization from employee, volunteer, or client related claims of discrimination, harassment or retaliation type allegations.

Fiduciary Liability

Provides coverage for the benefit plan administrator(s) from allegations of negligence in administering the plans as well as allegations of breaches of duties imposed by ERISA.

Innovative Risk Management Solutions

As a private company or executive, you have your own unique risk management needs. That’s why we provide complimentary loss prevention services that offer valuable solutions, including:

Toll-free hotline providing basic workplace issue consultations
Policyholder accessible website containing articles, sample documents, and loss prevention resources

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Proven Claims Expertise

Berkley Select's core cultural value stresses personal accountability, allowing us to identify and address localized market conditions and more efficient claims handling than most other insurance providers. In addition, an extensive claims database identifies trends that can be shared with you, as a policyholder.

Claim Count Frequency

75% of claims are EPL related
25% of claims are D&O related

EPL Top Claim Types by Frequency

Discrimination (disability, age, gender)
Whistleblower
Wage & hour

D&O Top Claim Types by Frequency

Breach of contract
Deceptive and unfair trade practices misrepresentation

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Claim Scenarios

The Berkley Select claims staff stands out as a team of in-house, experienced professionals empowered to resolve claims. While no two claims are exactly alike, the following examples illustrate a range of claim scenarios.

Age Discrimination and Retaliation

An EEOC charge was brought against an insured dedicated to bringing justice to underprivileged people in need of legal aid via the use of technology. The claimant was a former temporary employee whom alleged age discrimination and retaliation arising from the insured’s failure to offer her a permanent position. While the insured denied the allegations, the parties agreed to participate in the EEOC’s early mediation program. After taking time and cost factors into account, the case settled for $42,000 before significant defense expenses were incurred.

Disability Discrimination

A museum and its board chair were sued by the insured’s former executive director, who alleged disability discrimination, failure to accommodate, intentional infliction of emotional distress, constructive discharge, and other related claims. The plaintiff’s inflammatory allegations included he had a heart attack at work due to stressful and dangerous working conditions which the insured refused to remedy. The insured denied the allegations and the court dismissed some of the claims. A settlement was reached on the remaining claims. The insurer paid both the $28,000 defense expense and the $145,000 settlement.

Misappropriation

A former caretaker of a small historical society museum sued to recover hundreds of artifacts he claimed were originally his and that he simply lent to the organization. Plaintiff lived on the museum grounds for 15 years, and was dismissed when the board allegedly discovered significant acts of misconduct; the dispute was highly personal and contentious. Many of the listed items either did not exist, or the museum also claimed ownership, stating they were never his in the first place; the non-disputed artifacts were returned near the beginning of the case. Although no indemnity coverage was available for this matter, which mainly involved injunctive relief, defense expenses paid exceeded over $80,000.

Golf Club Membership Policy

An insured golf club was accused of gender discrimination. The spouse of a former club member claimed that the club’s former “men only” policy regarding weekend golf tee times was discriminatory against women. While the country club did have a new policy already implemented prioritizing members vs non-members, rather than gender, the claimant claimed the old policy still had a discriminatory impact because it resulted in the overall membership being approximately 90% male. Although on the surface this claim appeared to be defensible, the negative publicity surrounding the former policy presented a difficult litigation environment. After taking this into account a settlement was achieved in the amount of $40,000; approximately $410,000 in defense costs were also paid.

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