Options for organizations

If your client's state is one of the majorities that does not allow WC insurance to cover volunteers, you can still present them with some options.

Provide medical coverage under a volunteer accident policy. As a type of accident medical insurance policy, this coverage is designed to pay the medical bills and/or deductibles and copays (if coverage exists under another plan) if volunteers are injured while acting on behalf of the organization. Considered no-fault coverage, an accident policy provides immediate financial benefits to volunteers to help cover their medical expenses, and it can also help to reduce the likelihood of a lawsuit that may include compensations that stretch beyond necessary medical expenses. The cost of this type of policy is typically based on how many volunteers the organization has and what type of services the volunteers are providing.
Require volunteers to sign waivers and hold-harmless agreements. Waivers and hold-harmless agreements state upfront to volunteers that the organization does not provide WC or any other medical insurance coverage. In the event a volunteer becomes injured while working for the organization, these types of waivers of liability make it clear that volunteers assumed the risk themselves. And while these agreements may not always hold up in court, they can be of value in outlining the safety measures volunteers are expected to follow and the risks they should avoid while performing their duties. In some cases, organizations will combine a volunteer accident policy with a type of liability waiver for additional protection.

Volunteers can be a cost-effective option for nonprofits to continue their good work without having to hire additional employees. However, it's important for organizations to understand that there are inherent risks that come with the decision to utilize volunteers, and for you to educate your nonprofit clients on how they can best mitigate their exposure.

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Insurance coverage options to safeguard volunteers

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