Nonprofits are unique from regular businesses in that they don’t have a lot of formal employees. Instead, they have volunteers who still need to be covered in the case of accidents and injuries. A nonprofit that doesn’t have basic insurance coverage risks being sued over basic liabilities. Here are insurance types to consider for protecting your volunteers.
First and foremost, general liability insurance simply covers anyone who is injured on your property or injured due to your negligence. It protects you from being sued for negligence by volunteers. This does not cover you or your property but is purely to keep you out of lawsuits and courtrooms.
Directors and Officers Liability
This insurance specifically protects your company and anyone working for it, including volunteers, from being sued for acts that caused harm, including breaches of duty and errors. You can even be protected from libel and copyright infringement.
Workers’ compensation is not a part of volunteer insurance programs. It only covers official employees and does not extend to volunteers. Many insurance companies have add-ons for including volunteers in some portion of their other policies. If you are a company with many volunteers, you should consider these options before work begins.
Getting insurance for volunteers can be trickier than it seems. Making sure you have the right insurance to cover them can prevent hassle down the road.