Best Employment Practices Liability Insurance for Nonprofits (2026)
Nonprofit status alone does not take you out of employment law, and one hire can bring employment claims. The questions that matter are who the policy counts as an employee (volunteers, interns, board members), whether claims by clients and other outsiders are covered, and whether you are being quoted on a form written for nonprofits.2,11,12
6 providers document Employment Practices Liability Insurance for nonprofits. Coalition, Markel Insurance and Chubb rank highest on Spot’s evidence ranking.
Updated
Who Documents Employment Practices Liability for Nonprofits?
- Rank 1
Named for Nonprofits
- Broker Spot Score 6.1 and Carrier & MGA Spot Score 6.3 · Assessed 2026-09-23 · Coalition's US cyber and technology-errors-and-omissions activity at the named-entity level. Producer, surplus-lines, Texas…
Coalition says Executive Risks products, including EPL, are available to private and not-for-profit U.S. organizations in all 50 states and Washington, D.C., with up to $500 million in assets, up to 1,000 employees, and up to $500 million in plan assets. 16
Company-reportedExecutive Risks FAQ as read on 2026-09-23.
Read the Full Coalition Employment Practices Liability Insurance Page
- Rank 2
Named for Nonprofits
- Carrier & MGA Spot Score · Assessed 2026-09-29 · Markel Insurance Company (NAIC 38970, Illinois-domiciled) as an admitted U.S. commercial insurer, including its workers' compensation and…
Private companies and not-for-profit organizations described on the product page; exact underwriting class and terms remain risk-specific. 17
Company-reportedemployment practices marketed by markel; scope is limited to the cited official product overview and described audience. This is not a policy form or a universal eligibility statement.
Read the Full Markel Insurance Employment Practices Liability Insurance Page
- Rank 3
Related mention
- Carrier & MGA Spot Score · Assessed 2026-09-23 · Chubb Limited as group parent and the exact US insurer entities in the cited materials. Current authority is independently verified for…
Chubb underwrites Employment Practices Liability (EPL) insurance as one of seven coverage parts within its ForeFront Portfolio, providing coverage aimed at private companies, not-for-profit organizations and healthcare organizations. 18
Company-reportedForeFront Portfolio EPL product sheet.
Read the Full Chubb Employment Practices Liability Insurance Page
- Rank 4
Named for Nonprofits
- Broker Spot Score · Assessed 2026-09-22 · Foundershield LLC/Founder Shield brokerage activity and the separate The Baldwin Group Specialty Solutions, LLC entity named by the website…
Founder Shield markets EPLI to startups hiring their first employees, retail and hospitality businesses with high turnover, professional-services firms, technology companies, and non-profits with volunteers. 19
Company-reportedEPLI product page.
Read the Full Founder Shield Employment Practices Liability Insurance Page
- Rank 5
Named for Nonprofits
Not ratedSpot Score
CNA identifies private, nonprofit and public organizations among the potential EPL customer classes. 20
Company-reportedEntity: CNA brand; issuing company varies by form/state Product: Epack 3 Employment Practices Liability Jurisdiction: United States Research source scope: U.S. EPL under Epack 3; issuer/state terms vary Claim limitation: Eligibility remains subject to underwriting and policy state. Dated source: brochure ©2022; do not silently present this service or coverage detail as current. Source/date qualification: Copyright ©2022; brochure/service information is dated and should not be silently represented as current.
Read the Full CNA Employment Practices Liability Insurance Page
- Rank 6
Named for Nonprofits
Not ratedSpot Score
The source scopes the package to private and not-for-profit organizations and lists coverage for certain workers and volunteers; a quote is needed to establish applicant eligibility. 21
Company-reportedLiberty Mutual’s cited product or program overview documents this description. It does not establish the issuing insurer for an individual quote, exact state or provincial availability, the policy form, complete exclusions, or terms offered to a particular buyer; confirm those in the quote and policy documents.
Read the Full Liberty Mutual Employment Practices Liability Insurance Page
How Did Spot Rank Employment Practices Liability for Nonprofits?
Spot lists a provider only when its published Employment Practices Liability Insurance information includes a documented claim (verified or company-reported) about eligibility, role, coverage or application that mentions nonprofits. “Named for Nonprofits” marks a provider’s own statement of who it serves; “Related mention” marks a role, coverage or application claim.
Providers with both a Spot Score and a Review Score rank first, then providers with one of the two, then providers with neither. Within each group the order is the equal-weight average of the scores the provider has, as in the industry guides; ties break on fit, then the number of documented claims, then name.
The Spot Score comes from Spot’s reliability assessments and the Review Score from the provider’s rated review sources. Neither measures whether a policy fits your business or what it costs. How Spot Scores work.
Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. Editorial policy.
What Do Nonprofits Need From Employment Practices Liability Insurance?
Being a nonprofit does not take you out of employment law. The EEOC's coverage rules turn on size and speak of private employers; its manual says the private membership club exemption requires both tax-exempt status and club status, and religious organizations get a partial one that covers religion in hiring and discharge, not other bases. New York's human rights division says its law covers every employer in the state, and the federal regulation that defines employers for plant-closing and mass-layoff notices says they include non-profits of the requisite size.1,2,4,6
The Nonprofit Risk Management Center says the hiring of a single staff member opens the door to employment-related claims, and that nonprofit directors and officers (D&O) cover is very often bundled with employment practices cover. It also reports experts' view that perhaps 80 to 90 percent of claims under D&O policies arise under the employment practices portion. The article is undated and its site navigation refers to 2016 and 2017 events, so read it as dated expert opinion, not a count.11
Funders set their own insurance terms, so read your award. Federal grant rules make the cost of insurance required by the award allowable, and allow other insurance cost subject to limitations, including that it follows the grantee's written policy and sound business practice. The funder guides we read, from New York City's contracting office and Baltimore's youth fund, list general liability, workers' compensation and other lines but not employment practices cover. That is a read of two documents, not a rule.8,9,10
Which Employment Exposures Do Nonprofits Face?
Volunteers sit in a gray zone. The EEOC says volunteers usually are not protected employees, but that benefits such as a pension, group life insurance or workers' compensation, or a regular path from volunteering to a job, can change that. California's harassment rules protect unpaid interns, volunteers and contractors. Policy wording is a separate question: a carrier's 2009 specimen counts a volunteer or temporary worker as an employee and says independent contractors are not employees, while one 2007 nonprofit form counts volunteers, independent contractors and interns.2,5,13,14
Clients and vendors can be claimants too. The Center describes a third-party sexual harassment claim as one where a non-employee, such as a client, vendor or business partner, alleges harassment by a staff member or volunteer, and says some D&O policies defend these claims while others limit cover to claims by employees. A carrier's 2009 specimen applies third-party cover only if the declarations say so, and then only excess of any other insurance that applies to the claim. One 2007 nonprofit form lists third-party discrimination and harassment among its covered acts. Separately, the EEOC says an employer is liable when non-employees it controls, such as customers on its premises, harass its employees, if it knew or should have known and did not act.3,11,13,14
Pay disputes are often excluded. The Department of Labor says non-profit charitable organizations are not covered enterprises under the Fair Labor Standards Act unless they engage in ordinary commercial activities, though employees can still be covered individually. The Center says claims under that Act and breach-of-contract claims frequently surprise purchasers, and that most insurers exclude them from nonprofit D&O policies, though some give limited cover. One 2007 nonprofit form excludes the Act (except the Equal Pay Act) and wage disputes from misclassifying employees as exempt or non-exempt.7,11,14
What Should Nonprofits Check Before Buying Employment Practices Liability Insurance?
Confirm the quote is on a form written for nonprofits. The EPL application of one carrier says in its instructions that it is accepted only for private and publicly traded companies and will not be accepted for non-profit organizations, yet that carrier's product page names nonprofit organizations as an audience. That is one form, not the market, but it shows that a carrier's marketing and its application can differ, so ask which application and policy form your quote uses. The specimen wording cited on this page comes from the same carrier, so read it as one example of EPL wording, not as proof of what a nonprofit quote will say.12
Ask who the policy insures and for what. Read the definition of employee for volunteers and interns, and ask how board and committee members are treated. The EEOC says board members and officers usually do not qualify as employees, and a carrier's 2009 specimen insures directors and officers only for the employment wrongful acts it covers, so ask where management claims are covered. Ask for third-party cover in writing.2,13
Check timing and prior knowledge. The Center says most D&O policies require claims to be reported as soon as practicable and in any event within 30 to 60 days after the policy expires. One 2007 nonprofit form gives full prior acts coverage but excludes matters the signer knew or had reason to anticipate would result in a claim before inception, so disclose known complaints before you apply.11,14
A certificate shows proof of insurance, not the policy's terms. Oregon's insurance regulator says certificates do not amend, extend or change coverage. If a funder asks for proof, find out what it wants to see: New York City's contracting office says it can request a copy of your policy at any time, and Baltimore's youth fund says every required coverage must be stated explicitly on the certificate.9,10,15
What Do Nonprofits Ask About Employment Practices Liability Insurance?
Do Nonprofits Need Employment Practices Liability Insurance?
None of the sources we read makes it a legal requirement. Employment law applies to nonprofits, with federal size thresholds and some exemptions, and the Nonprofit Risk Management Center says one hire opens the door to claims. Check your grant and contract terms for insurance requirements; the funder documents we read did not list employment practices cover.2,9,10,11
Does Employment Practices Liability Insurance Cover Volunteers at Nonprofits?
It depends on how the form defines an employee. The EEOC says volunteers usually are not protected employees, but policy wording is separate: a carrier's 2009 specimen counts a volunteer as an employee, and one 2007 nonprofit form includes volunteers, independent contractors and interns. Ask for the definition in writing.2,13,14
Does Employment Practices Liability Insurance Cover Wage and Hour Claims for Nonprofits?
Usually not. The Nonprofit Risk Management Center says most insurers exclude Fair Labor Standards Act and breach-of-contract claims from nonprofit D&O policies, though some give limited cover, and one 2007 nonprofit form excludes wage disputes from misclassifying employees as exempt or non-exempt.11,14
Can Nonprofits Use a Grant to Pay for Employment Practices Liability Insurance?
Under federal awards, insurance the award requires is an allowable cost, and other insurance is allowable subject to limitations, including that it follows your written policy and sound business practice. The rule does not name employment practices cover, so ask your funder.8
Sources for Employment Practices Liability Insurance for Nonprofits
Sources for the Segment Guidance
- Federal Laws Prohibiting Job Discrimination Questions and Answers. U.S. Equal Employment Opportunity Commission; IV. Which Employers and Other Entities Are Covered by These Laws? Accessed 2026-10-01.
- Section 2 Threshold Issues (EEOC Compliance Manual). U.S. Equal Employment Opportunity Commission; 2-III A.1.c Volunteers; A.1.d Partners, Officers, Members of Boards of Directors; B.4.a.ii Bona Fide Private Membership Clubs; B.4.b.i Exemptions for Discrimination Based on Religion (manual dated 2000; enforcement guidance, not law). Accessed 2026-10-01.
- Harassment. U.S. Equal Employment Opportunity Commission; Employer-liability paragraph: non-employees over whom the employer has control. Accessed 2026-10-01.
- Protected Places. New York State Division of Human Rights; Employment. Accessed 2026-10-01.
- Employment. California Civil Rights Department; Who is covered by the employment part of the Fair Employment and Housing Act: harassment of unpaid interns, volunteers and contractors. Accessed 2026-10-01.
- 20 CFR 639.3 Definitions. U.S. Department of Labor, Employment and Training Administration (eCFR); (a)(1) employer includes non-profit organizations of the requisite size. Accessed 2026-10-01.
- Fact Sheet #14A: Non-Profit Organizations and the Fair Labor Standards Act (FLSA). U.S. Department of Labor, Wage and Hour Division; Enterprise Coverage; Individual Coverage (fact sheet dated August 2015). Accessed 2026-10-01.
- 2 CFR 200.447 Insurance and indemnification. Office of Management and Budget (eCFR); (a) and (b)(1). Accessed 2026-10-01.
- Council Discretionary Funding: Understand Insurance Requirements. New York City Mayor's Office of Contract Services; 1. Introduction: insurance required of nonprofits receiving funding. Accessed 2026-10-01.
- Insurance Requirements. Baltimore Children and Youth Fund; Required coverage table. Accessed 2026-10-01.
- What Do You Know About D&O? (Risk Management Essentials). Nonprofit Risk Management Center; Whole article (undated; site navigation refers to 2016 and 2017 events). Accessed 2026-10-01.
- Employment Practices Liability Coverage Application (EPL-N-14100 Ed. 06-22). Travelers Casualty and Surety Company of America; p.1 Important Instructions and questions 1-2; p.2 questions 3-12. Accessed 2026-10-01.
- Employment Practices Liability Coverage (EPL-3001 Ed. 01-09, specimen). Travelers; I.B third-party coverage; II.D Employee; II.K Insured Person; II.V Third Party Wrongful Act; II.X Wrongful Act; IV.B.2 Other insurance (Ed. 01-09, 2009). Accessed 2026-10-01.
- Nonprofit D&O and Employment Practices forms DO-100 and DO-101 (Ed. 04-07). Insurer not named in the form text (path suggests United States Liability Insurance Company); copy hosted by Starwind Associations; DO-101 Definitions (Employee; Third Party Discrimination; Third Party Harassment; Wrongful Employment Act); Full Prior Acts Coverage Provision; Exclusion L. Accessed 2026-10-01.
- Modifying insurance certificates. Oregon Division of Financial Regulation; Certificates cannot vary from contract: certificates are for information only. Accessed 2026-10-01.
Sources for the Ranked Providers
- Executive Risks. Coalition. Accessed 2026-09-23.
- Private and Nonprofit Management Liability Insurance. Markel. Accessed 2026-09-30.
- The ForeFront Portfolio — Employment Practices Liability Insurance. Chubb. Accessed 2026-09-23.
- Employment Practices Liability Insurance. Founder Shield. Accessed 2026-09-23.
- Employment Practices Liability | CNA. CNA. Accessed 2026-09-28.
- ProShield. Liberty Mutual Business Insurance. Accessed 2026-09-29.
