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DocuSign Envelope ID: 7F8DFDB2-D81A-4AOF-AF96-9B69F601FC96 <br /> A hanceq ALLIANCE OF NONPROFITS FOR INSURANCE <br /> �.� ������ RISK RETENTION GROUP <br /> P.O. Box 8546, Santa Cruz, CA 95061 <br /> (j ,for I115ur ace P: (800) 359-6422 <br /> Risk Retention Group F: (831)459-0853 <br /> DATE: .July 29, 2013 <br /> TO: North Carolina Public Health Foundation (37160) <br /> FR: ANI <br /> RE: Avoiding Wrongful Termination Lawsuits <br /> You have recently purchased Directors and Officers coverage with the Alliance of Nonprofits for <br /> Insurance, Risk Retention Group(ANI). Employee-related lawsuits are the most common claim filed <br /> against nonprofit D&O insurance policies. Many of these lawsuits can be avoided by obtaining good <br /> advice before you terminate an employee. To assist you, ANI provides FREE pre-termination <br /> consultation. ,Just contact our Labor and Employment risk managers at 800-359-6422 and they will <br /> assist you to ensure that you take the appropriate actions to protect your organization. <br /> Another service that ANI provides FREE is reviewing your personnel handbook to ensure that it is in <br /> compliance. <br /> You may find these additional facts about employment-related matters of interest: <br /> o Well over 90%of the claims made against directors and officers of 501(c)(3) nonprofits are <br /> employment related. These commonly involve allegations of wrongful terminations, <br /> discrimination, or harassment. <br /> i The primary reason nonprofits find themselves in employment-related lawsuits is failing to <br /> follow, to the letter, personnel policies which are in compliance with law. In particular, if your <br /> personnel policies provide for any special considerations before terminations, such as <br /> grievance, probationary period, or written or verbal warnings, and you do not follow these <br /> policies to the letter, but instead fire immediately in anger, chances are good that you could <br /> find yourself in a lawsuit. <br /> o During our review of personnel policies of those nonprofits with D&O coverage, we most <br /> commonly find policies out-of-compliance with current law regarding pregnancy leave, <br /> provision for payment of overtime, and applicable classes protected from discrimination such <br /> as sexual orientation, political affiliation, veteran status and others. <br /> For everyone's benefit we hope your organization does not find itself in a difficult termination <br /> situation. However, if you do, please do not hesitate to contact our labor and employment risk <br /> managers before you take action so that together we can help minimize your exposure to expensive <br /> and time-consuming lawsuits. <br /> P.S. A knowledgeable, committed board of directors is the strongest protector of a charitable <br /> organization's accountability to the law, its clients, it donors and the public. Are you looking <br /> for a communications and information management solution for your board of directors? <br /> BOARDnetWORK was created by ANI for its member-insureds. This FREE easy to use, <br /> web-based resource will help streamline the process of keeping your board organized and <br /> running smoothly. <br /> View short demo at www.boardnetwork.org. For more information, call our Director of Loss <br /> Control at(831) 621-6076. <br />