For mission-driven organizations, employees and volunteers are the backbone of your operations. They help you fulfill your purpose and serve your community — but they also introduce liability risks that can impact your financial stability and reputation. Understanding these exposures and taking proactive steps to manage them is essential for safeguarding your organization.

Why liability risk management matters

Your responsibility to protect staff and volunteers goes beyond providing a safe workplace. You may also be held accountable for their actions, errors and omissions. Without proper risk management and the proper insurance coverage included in your policy, a single incident can lead to costly lawsuits, operational disruptions and reputational harm.

Key liability exposures for employers

Workers’ compensation

If your organization has paid employees, you may be responsible for work-related injuries. In many states, workers’ compensation insurance is mandatory. In others, employees may sue for negligence, which can result in significant legal costs.

Risk reduction tips:

• Complete an analysis of the workplace and operations to ensure potential hazards have been identified and addressed.
• Provide and document thorough training for all staff.
• Maintain a hazard-free environment with proper lighting and spill prevention.

Even with these precautions, accidents happen. That’s why workers’ compensation coverage is critical — not just for compliance, but for the potential to protect your organization from financial strain.

Internet and email usage

Digital communication introduces new liability risks. Improper use of email, social media or online platforms can lead to privacy breaches, harassment claims or reputational damage.

Best practices:

• Establish clear written policies for internet and email use.
• Define acceptable online behavior, especially when interacting with minors.
• Prohibit staff and volunteers from contacting children via social media to prevent impropriety.

Discrimination and harassment

Employment-related lawsuits are among the most common liability exposures. Claims of discrimination, harassment or wrongful termination can be financially and emotionally draining.

How to help lower your risk:

• Hire and promote based on merit — not age, gender, religion (except clergy roles), marital status, ethnicity or disability.
• Ensure fair compensation practices.
• Document all disciplinary actions.
• Limit employment references to dates and positions unless consent is given.
• Implement and enforce a sexual harassment policy.

Employee benefits liability

Administering employee benefits incorrectly can lead to lawsuits. Errors in counseling employees or providing inaccurate information about benefits can expose your organization to claims.

If you lack in-house expertise, consider hiring an HR consultant to manage benefits administration and compliance.

Volunteers

Volunteers often face the same risks as employees — but without workers’ compensation protection in most states. They may sue for injuries sustained while serving your organization. Additionally, volunteers are frequently undertrained, increasing the likelihood of accidents.

Action steps:

• Provide adequate training and necessary equipment.
• Consider liability coverage that includes volunteers.

Vicarious liability

Your organization can be held liable for the actions of employees and volunteers acting within the scope of their duties.

Risk prevention strategies:

• Screen staff thoroughly before hiring.
• Offer comprehensive training for all job responsibilities.

The benefit of a comprehensive insurance policy

Despite best efforts, you can’t eliminate every risk. That’s why commercial liability insurance is essential. The right policy can help protect your organization from financial losses tied to employee and volunteer-related claims.

Look for policies that include:

• Workers’ compensation.
• Employment practices liability.
• Volunteer liability coverage.
• Employee benefits liability.

Why partner with a specialized carrier?

Mission-driven organizations have unique exposures that generic policies often overlook. Working with an insurer that understands your unique operations and challenges — like Church Mutual — ensures you get tailored solutions backed by trusted expertise, purpose-driven protection and support beyond the policy.

What we provide:

• Industry-specific risk insights
• Flexible coverage options
• Proactive risk management resources
• Thorough claims support when it matters most

The bottom line

Your employees and volunteers are vital to your mission, but they can also create liability exposures that could threaten your organization’s mission and future. By understanding these risks, implementing preventive measures and securing a comprehensive insurance policy can help protect your people, your property and your purpose.

Explore Church Mutual’s risk management resources, including expert articles, checklists and guides.

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The information contained in these materials is intended solely to provide general guidance on topics that may be of interest to you. While we have made reasonable efforts to present accurate and reliable information, Church Mutual Insurance Company, S.I. and its affiliates disclaim all liability for any errors or omissions or for any actions you take or fail to take based on these materials. The information provided may not apply to your particular facts or circumstances; therefore, you should seek professional advice prior to relying on any information that may be found in these materials. This material may include only a general description of insurance coverages and does not include all terms, conditions, and limitations found in Church Mutual Insurance Company, S.I. (“Church Mutual”) policies. The insurance policy, not any general descriptions of coverage that may be found in this material, will form the contract between the insured and Church Mutual. Neither Church Mutual nor its parent company, Church Mutual Insurance Holding Company, Inc., its subsidiaries, officers, employees, representatives, or agents shall be liable to any party for the use of any information of statements made or contained herein.