The Nonprofit:
A nonprofit operated a seasonal youth theater program for children ages 8 to 14. The program produced live musical performances during the summer months and was housed in a historic community theater.
The nonprofit employed a director, choreographer, and music director, along with several stagehands, set designers, and prop managers.
The Incident:
One morning, the director posted the casting list for the summer production. During pickup that afternoon, a parent approached the director. They were upset that their child had not been cast in the role they wanted and demanded an explanation.
Witnesses later reported that the parent was speaking loudly and standing very close to the director, face to face. The director asked the parent to step back, which appeared to further escalate the situation. The parent raised his voice, and the director shoved the parent away.
The parent then moved back toward the director, and a fistfight ensued. Parents and staff intervened and pulled the two apart. Police were called. No major injuries were reported, but both the parent and the director were taken into custody.
After the incident, the nonprofit’s executive director gathered signed witness statements and requested any available cell phone video, which were included in an incident report.
The Legal Action:
The parent later filed a lawsuit against both the nonprofit and the director. The lawsuit alleged that the director initiated the physical altercation by shoving the parent.
The Coverage:
Once the nonprofit was notified of the legal action, it alerted its broker, who began the claims process under the nonprofit’s Improper Sexual Conduct and Physical Abuse (ISCPA) policy with Nonprofits Insurance Alliance (NIA).
Claims examiners reviewed the circumstances of the incident, including witness statements, police reports, video recordings, and the nonprofit’s documentation, policies, and training procedures.
The Result:
The claims review concluded that, because the director had made the first physical contact, there was potential liability exposure and the parent could reasonably argue he’d acted in self defense.
As a result, the matter was resolved through settlement discussions.
Things The Nonprofit Did Well
Several actions helped the nonprofit respond effectively and protect itself.
The organization had established incident reporting and recordkeeping procedures, and staff were trained on those procedures through regular refresher sessions.
When the incident occurred, the executive director knew to promptly document what had happened to complete an incident report, including details such as, who was involved, when and where the incident occurred, witness statements and contact information, video recordings, etc.
Collecting this information quickly, while details were still fresh, helped establish a clear timeline of events, identify potential witnesses, flag relevant details, and allow a thorough review of the nonprofit’s actions and processes.
The nonprofit also notified its insurance broker as soon as it learned it had been named in the lawsuit, which allowed the claims process to begin early and ensured the insurer could assess potential liability and prepare a response from the outset.
How Can Your Nonprofit Help Protect Itself?
Nonprofits often work with people who may be frustrated, disappointed, stressed, or otherwise upset. While conflicts cannot always be avoided, organizations may benefit from thinking ahead about how tense situations are handled.
This can include having clear conflict-resolution processes alongside shared expectations for addressing concerns and safety.
Practices that combine supervision standards with structured activity protocols can also help provide clarity and accountability when issues arise.
Clear incident reporting procedures are another important tool. Even for relatively minor incidents, documenting the incident circumstances and the organizational response can help establish an accurate record if questions arise later.
Training can also play a role. Some nonprofits provide staff with guidance on managing conflict situations and identifying when additional assistance may be needed. These skills can help staff respond calmly and appropriately in situations where emotions may run high.
Finally, careful screening and documentation/recordkeeping support good decision making over time.
Maintaining records related to policies, training, attendance, incident reports, and security footage can help demonstrate that an organization acted responsibly and consistently if its actions are ever reviewed.
NIA Resources
Nonprofits insured by NIA have access to a range of risk management tools and services that may be relevant when addressing incidents involving employee conduct or workplace conflict.
All NIA‑insured nonprofits receive free access to My Risk Management Plan, an online set of tools designed to help organizations develop a risk management plan tailored to how the organization operates and defines its goals.
NIA also offers insured nonprofits access to risk management consulting services, which can support organizations in identifying and addressing key risks across their operations.
In addition, NIA‑insured nonprofits are eligible for a 40% discount on screening services through IntelliCorp, which may assist organizations in evaluating candidates and placing individuals in roles that align with their responsibilities and risk profile
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.
