The Nonprofit:
A nonprofit provided in-home healthcare services to elderly clients, people with disabilities, and individuals recovering from injuries. As part of its services, staff administered medications that had been prescribed by outside medical providers.
The Incident:
While caring for an elderly woman who was a new client, one of the nonprofit’s aides misunderstood the prescribing doctor’s medication instructions.
Rather than seeking clarification, the aide administered an incorrect dosage of the medication.
The dosage error resulted in the client’s death.
The Legal Action:
The coroner’s report identified the cause of death as an improper medication dosage.
The client’s family filed a wrongful death lawsuit against the prescribing doctor, the nonprofit, and the aide.
The Coverage:
After becoming aware of the lawsuit, the nonprofit notified its insurance broker. The broker initiated the claims process under the organization’s Social Services Professional coverage with Nonprofits Insurance Alliance (NIA). Legal defense was provided for both the nonprofit and the aide.
The Result:
Because the prescribing physician was also named as a defendant, the matter involved multiple parties and took significant time to resolve.
Defense counsel evaluated the circumstances of the dosage error and the allegations against each defendant, and the parties addressed the dispute through the legal process, concluding with a negotiated resolution.
Things the Nonprofit Did Well:
The nonprofit reported the lawsuit promptly and followed established procedures for notifying its insurance broker. Doing this allowed legal defense to be coordinated early in the process.
The organization also cooperated with the claims review and legal proceedings as the matter moved forward.
How Can Your Nonprofit Protect Itself?
Nonprofits that administer medications may benefit from a clear, shared process for confirming orders and addressing questions before a dose is given.
When an error is suspected or identified, having a consistent communication and documentation approach can support an appropriate response and later review.
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.
