Do we need employment practices liability insurance (EPLI) if we only have a few employees?

Many small religious institutions and nonprofits incorrectly assume that only large organizations with an HR department have employment practices liability exposure. In reality, smaller organizations are often more susceptible to lawsuits than larger ones due to the number of interactions and relationships they manage, having to rely on a unique mix of full-time employees, part-time staff, and contractors that are actually considered employees. A single person can bring an employment related claim, from wrongful termination to failure to promote, not having adequate EPLI can be financially crippling, especially for a nonprofit organization. Defense costs alone can range widely depending on the complexity of the case, not to mention potential settlements or judgments. EPLI can help offset a portion of these costs, offering a crucial layer of financial security.