According to Statistics Canada, over 47% of Canadians volunteer each year. That’s more than 13 million people volunteering their time for over 2 billion hours annually. With this in mind, it’s important to recognize the vital role that volunteers play in non-profits and other organizations across the company. That’s why it’s crucial to avoid errors and omissions in your insurance policy.
However, things are a little different since volunteers are donating their time, energy, and skills for free. Although this is true, they are still entitled to the same protection that paid employees are. Where things get complicated is that volunteers are not as familiar with the work environment as employees who have been trained and on the payroll for years. As a result, they have a greater risk of being injured at work. That’s where our guide to volunteer insurance coverage can help you out.
Types of volunteer insurance policies
As an organization, you are responsible for providing your volunteers with insurance policies that will protect them in the event of an accident. You are responsible for your volunteers, like your employees, so consider them additional business liabilities. This is why volunteer organizations need a proper volunteer management system to keep everything in line. Below, we will review the different types of volunteer insurance policies:
Volunteer accident insurance
If a volunteer suffers a bodily injury while working with your organization, volunteer accident insurance can help. It will compensate the person involved in the volunteer program for medical expenses and other financial losses that result from their injury. This is not the same as a personal insurance claim.
Volunteer liability insurance
Having some type of public liability insurance is essential. During volunteer activities, people run the risk of damaging their property. If the volunteer takes legal action as a result, this type of volunteer insurance will pay for legal fees. Additionally, it usually requires proof of fault. If there is not enough evidence, it will be cancelled, like an unwarranted personal injury claim.
Volunteer travel insurance
It’s not uncommon for volunteers to travel to get their work done. Volunteer travel insurance covers illness or injury outside of their home country. The volunteer needs to purchase the insurance policy.
Nonprofit event insurance
Ask your insurance provider about nonprofit event insurance if your organization tends to host fundraiser events. This is for one-time or infrequent events like an annual marathon at the beginning of summer. It’s not required year-round. This is similar to personal injury coverage because it protects you if someone gets hurt at your organization’s event.
The types of volunteer insurance you need will vary depending on your organization. While volunteer accident insurance and liability insurance are suitable for everyday use, volunteer travel insurance and nonprofit event insurance are only needed in certain scenarios. Something you may have noticed is that sometimes volunteers can buy their own insurance policies, but this isn’t always the case. Next, we will determine who’s liable when volunteers work with an organization.
The roles of volunteers and organizations in purchasing insurance
Who’s responsible for what when it comes to insurance? The answer to this question will vary depending on who you ask. However, getting proper insurance can be considered a collaborative effort between organizations and volunteers. Here’s what you need to know about each one's role:
The volunteer
As a volunteer, your personal property policy may help protect you from certain risks associated with volunteering. For example, if your personal property is damaged while volunteering, it may be covered under your property policy, subject to your deductible. If you accidentally injure someone while volunteering and the injured person decides to take legal action and seek compensation, both your personal insurance company and the organization’s insurance company should be advised and will get involved. A personal injury claim can affect your insurance rates.
The organization
As an organization, you may be held liable for the actions of your volunteers. Examples of risks to seek coverage for do not just include bodily injury or property damage. Other lesser-known coverages include personal injury incorporating slander; non-owned automobile insurance, in which volunteers use their own cars for an organization’s business; and tenant’s legal liability, where a volunteer causes damage to the organization’s rental property. Having commercial general liability insurance that covers volunteers is pivotal for non-profit organizations to manage risks and protect valued volunteers.
Implementing a structured risk management approach, which includes comprehensive insurance coverage, is vital in ensuring that an organization can continue to meet its objectives when faced with an insurance issue. In creating a risk management approach, you will determine what situations you may be exposed to and will require coverage for. As each non-profit organization will have very different risks depending on the types of services they perform, the kind and level of coverage each organization requires will also vary.
Contact BrokerLink to learn more about your insurance options today!
If you are a volunteer and want to learn more about how you are protected through your own personal policy, contact a BrokerLink broker today. If you are a voluntary organization looking to update your third party liability insurance, we can help you find the right type of coverage that fits your unique needs and circumstances.
What are you waiting for? Speak with a BrokerLink broker to discover all the ways we can help ensure the safety of your hardworking volunteers so that you can keep on serving the community together with peace of mind.
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