: Volunteers Coverage Under General Business Insurance Policies

The majority of nonprofit organizations rely on volunteers to help move their mission forward without devoting a huge chunk of their financial resources to payroll costs. In many ways, these volunteers are considered and treated like any other workers within a company. There are some special considerations to using a non-paid workforce that nonprofit management must address. One of those is answering whether you have sufficient insurance to protect both volunteers and company interests.

Coverage Against Claims

In most cases, a volunteer will be covered by general liability insurance if a claim is made against them for actions performed during their normal duties. It’s always a good idea to review the covered parties section of your policy to confirm that information. Even if volunteers are covered under your liability policy, the coverage may not be sufficient to protect against losses to your organization.

Coverage for Medical Payments

You are more likely to find yourself facing a coverage gap when it comes to volunteers getting sick or injured while performing their duties. In most cases, volunteers are not covered by workers’ compensation policies. That means your organization may be responsible for those costs once you exhaust the medical payments portion of your liability insurance.

It is best to work with an agent knowledgeable in the unique needs of nonprofits to find an appropriate policy. In many cases, a separate volunteer insurance policy can be a useful tool to protect organizational assets.