Why Volunteer-Based Organizations Need Insurance
Volunteer-driven organizations and non-profits need risk management insurance to protect their employees and operations. However, non profit volunteer risk management concerns are different than those of traditional businesses, so coverage is tailored to an organization’s unique exposures.
Volunteer Risk Management Coverages
Here are several important insurance coverage areas for businesses to consider:
- General liability insurance: these types of claims: property damage, personal injury at the workplace, and bodily injury allegations. This insurance is rated with consideration for an organization’s risk factors.
- Public liability insurance: In case of volunteer liability claims, it is important to have public liability insurance for coverage gaps; protection of at least $1 million is recommended. States vary on their requirements for this insurance. Another option is an accidental medical reimbursement policy to cover volunteer injuries.
- Directors and officer’s insurance: D&O insurance cover directors or officers who are sued for various management issues. These include wrongful termination, discrimination, harassment or mental anguish claims. There are a number of other serious allegations this insurance addresses, such as libel and privacy concerns.
Volunteer dishonesty issues are another reason to have comprehensive insurance. It is essential to speak with an insurance agent to get the right non-profit volunteer insurance program based on an organization’s risk management needs.