While your volunteers are in the process of doing good for the community, they may accidentally get into a situation that causes harm to your organization. Even though your volunteer may have had pure motives and no intent to cause damage or injure another, your company will undoubtedly be held responsible for the incident. This could mean a costly legal battle and a damaged reputation.
Risk Management for Nonprofits
There are many ways that volunteers can help your organization and the surrounding community, with some involvement carrying greater risks than others. Volunteer firefighters bring more exposure than the volunteer stuffing envelopes in the office. Regardless of the activities, a policy providing insurance for volunteer work is the first step in a risk management plan for nonprofit agencies.
Areas of Potential Liability
Many nonprofits operate on a limited budget and feel that volunteer coverage is too much of an expense. Consider the implications of not having insurance coverage. A volunteer could cause injury to another individual, the volunteer themself may be hurt, or an automobile accident occurs while a volunteer is transporting products or people for the organization. Paying for these incidents out of company funds could ruin the organization.
Having an insurance policy that covers volunteers can ensure your nonprofit has the resources needed to carry on its mission of goodwill. The expense of a plan is minor compared to the expenses of litigation.