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Nonprofit Resources is a wholly owned Subsidiary of Colorado Nonprofit Association |
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Volunteer Liability Insurance The previous issues of iNews have discussed coverage under a Business Auto policy. To review that information or any of the previous issues, please click here... Federal and State Volunteer Protection Laws Sometimes nonprofit organizations are led to believe that federal and state volunteer protection statutes eliminate the need for insurance that protects volunteers. This is not true. The federal Volunteer Protection Act of 1997 does not protect individual volunteers against acts of gross negligence, automobile-related liability or violations of federal civil rights laws. Even if a volunteer is only merely negligent under the federal law or a state law, that does not prevent a lawsuit from being filed. Substantial defense costs may be incurred before a court rules that the immunity protection applies. An organization considering protecting its volunteers might wonder how to keep track of volunteers as they come and go, for insurance purposes. Most insurers require that the nonprofit estimate the number of individuals who will volunteer at one time or another during a one-year period (regardless of the number of volunteer positions). Also, the organization should keep a roster of volunteers. If there is a claim, the insurance company might require proof that the person was a volunteer during the policy period. Nonprofits that use volunteers extensively to deliver services often want to take steps to make certain that the medical expenses of a volunteer injured while serving the nonprofit will be covered by insurance. In addition, many nonprofits want to assure volunteers that they are protected against lawsuits.
Accident Medical Reimbursement This coverage provides reimbursement for medical treatment, hospitalization and licensed nursing care, dental care and for repair and replacement of eyeglasses. It also includes benefits for accidental death and loss of limb and sight. Limits of up to $25,000 per covered accident are generally available. Accident policies, other than those for work-release participants, are available with no deductible. Coverage may be extended to clients and participants in a program. This insurance is available on an excess basis; that is, coverage is in excess of Medicare, Medicaid or any insurance the volunteer has in place. If there is no such insurance, the coverage becomes primary. Common exclusions for this policy include sickness, injuries occurring while performing fire or rescue duties, playing sports, or accidents incurred while under the influence of controlled substances. Services performed by volunteers need to be described on the application so the policy's underwriters understand the nature of the risk.
Risk Management Strategies Prevent accidents by evaluating the workplace and each volunteer's duties from a physical safety standpoint. If you have volunteers who drive, make certain they are able to drive safely and have any specialized training their duties require. Take time for adequate screening, training and supervision of volunteers to reduce the risk of injury to a third party. Make sure volunteers report any injuries to themselves or others promptly to ensure that claims can be filed in a timely way. Follow up on any such incidents to make certain that neither the volunteer nor any affected third party believes the claim is unresolved. The staff at Nonprofit Resources has many years of experience helping organizations to determine the appropriate coverage. Give us a call if you would like to talk with us about our insurance programs. Let us address one of your questions!
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