The Nonprofit:
A nonprofit provided live music performances and supported art, music education, culture, and humanities programs within the community.
The Incident:
An employee experienced ongoing productivity challenges and requested an accommodation related to a vision issue.
The accommodation request was not addressed promptly, and the interactive process required under employment law was not initiated within the expected timeframe.
The Legal Action:
The employee filed a complaint with a labor oversight body alleging discrimination based on the handling of the accommodation request.
The Coverage:
The nonprofit reported the matter to its insurance broker and made a claim under its Board & Executive liability coverage with Nonprofits Insurance Alliance (NIA), which included Employment Practices Liability (EPLI) policies. Defense counsel was provided to the nonprofit.
The Result:
During review, the labor oversight body found that the nonprofit had failed to meet the minimum legal standard for timely engagement in the interactive process. The finding was attributed to a lack of understanding of employer obligations rather than intentional discrimination.
NIA negotiated a settlement with the employee’s representatives. As part of the resolution, the nonprofit also received access to training through NIA’s educational webinars.
Things the Nonprofit Did Well:
The nonprofit had elected to carry EPLI coverage, which enabled access to legal defense.
After the complaint was filed, the nonprofit cooperated with the review process and participated in training to better understand its accommodation obligations as an employer.
How Can Your Nonprofit Protect Itself?
Nonprofits that employ staff should consider how accommodation requests are recognized, how the interactive process is documented, how decisions are evaluated for consistency with applicable laws, and how supervisors are trained on employment law responsibilities.
Clear procedures, timely communication, and ongoing education can help organizations respond appropriately when accommodation issues arise.
NIA Resources:
NIA insured nonprofits with Employment Practices Liability Insurance have access to Employment Risk Consulting, which can provide guidance on employment related questions. This service is included with EPLI coverage.
NIA also offers webinars and other training opportunities for insured nonprofits. These resources cover a range of employment and risk management topics.
From the Claims Files stories are for general information only. They are simplified examples and do not guarantee coverage, a defense, or any specific outcome. Some losses described in this series may not be covered.
Coverage depends on the specific facts and on the terms, conditions, and exclusions in your policy. Contact your insurance broker or agent for guidance, and follow your policy’s claims reporting procedures if an incident may involve a claim.
This story is not legal, medical, financial, or professional advice. In an emergency, contact local emergency services first. Any risk management practices mentioned are general suggestions and may not apply to every nonprofit. Follow all applicable laws, licensing rules, and reporting requirements.
