Introduction

Volunteers can have accidents, injuring themselves or others. The insurance policies that the volunteers have (for example, homeowners and personal auto) and the policies that the organizations using the volunteers have (for example, general liability and workers compensation) many times have gaps in coverage that may end up costing the volunteers and the organizations money from their own personal resources. Volunteers Insurance Service was established nearly thirty years ago to help address these coverage gaps.

CIMA's Volunteers Insurance Service program offers the following types of coverages either separately or combined: up to $25,000 in medical expense reimbursement as a result of a covered accident; up to $1,000,000 in personal liability insurance; and up to $500,000 in excess automobile liability insurance above the volunteer's own auto insurance.

For detailed information on the volunteer coverage program, contact CIMA at 2750 Killarney Drive, Suite 202, Woodbridge, VA, 22192; 703-739-9300; 800-468-4200; Web site: www.cimaworld.com.

Accident Insurance

QBE Specialty Insurance is the underwriting company for the accident insurance. This coverage pays up to $50,000 maximum for covered medical treatment, hospitalization, and licensed nursing care required as the result of a covered accident. The coverage applies while the volunteer is traveling directly to and from, and while participating in, volunteer assignments. Initial medical expenses must be incurred within sixty days of the accident. Expenses are covered for a one-year period following the accident.

Eligible accident medical expenses include: in-patient hospital services; physician services; outpatient services; and medical equipment, services, and supplies. Examples of the covered in-patient hospital services are room and board, hospital miscellaneous charges, nursing services, lab work, X-rays, and ambulance service from the accident to the hospital. Examples of the physician services are surgery, second opinions, anesthesia, and office visits. The outpatient services include emergency room treatment, X-rays and laboratory tests, physiotherapy (including acupuncture and massage therapy), and nursing home or extended care facility. The medical equipment and supplies that are covered are prescription drugs, rental of a wheelchair, and other medically necessary equipment that has received prior approval by the insurance company.

Dental care is covered up to $500 per tooth for accidental injury to sound, natural teeth and repair of dentures; maximum benefit per accident is $900. There is also up to $50 provided for repair or replacement of eyeglass frames, and up to $50 for repair or replacement of eyeglass prescription lenses damaged as a result of a covered accident. These benefits are included in the $50,000 maximum figure.

The benefits are payable for eligible expenses that are in excess of benefits paid to the volunteer by any other health care plan, such as his own health care plan. But, in the event no other health insurance exists, the benefits paid under this program are paid on a primary basis.

In addition to the accident medical coverage, QBE will also pay benefits for death or loss of limb or sight occurring within one year after a covered accident when the loss results directly from an accident. The benefits are as follows: $2,500 for loss of life; $2,500 for loss of both hands, feet or eyes, or any combination of two thereof; $1,250 for loss of either foot or either hand, or the sight of one eye; and $625 for the loss of a thumb and index finger of the same hand. Only one amount, the largest to which the volunteer is entitled, is paid for all losses resulting from one accident.

There are exclusions that affect this coverage. The policy does not cover any loss as a result of: war or any act of war; hernia of any kind, any bacterial infection, or any form of sickness or disease (bodily injury is covered, not a sickness or disease); an injury caused by flight in an aircraft except as a fare paying passenger, spacecraft, ultra light, or any injury caused by hang-gliding, parachuting, or bungi-cord jumping; or an injury or accident occurring while a volunteer fireman, rescue squad member or sports team member. And, benefits will not be paid for services for treatment rendered by a doctor, nurse, or any other person who is employed or retained by the policyholder. Finally, any loss sustained or contracted in consequence of being under the influence of any controlled substance (unless administered on the advice of a doctor) will not be covered.

Personal Liability Coverage

Lloyds of London is the underwriting company for this coverage. All registered volunteers of an organization are provided with personal liability insurance at a limit of $1,000,000 per occurrence, subject to an annual aggregate per named organization. The policy provides protection for a personal injury or a property damage liability claim arising out of the performance of the registered volunteer's duties. The coverage is in excess of and non-contributing with any other valid or collectible insurance the volunteer may have.

The exclusions for this coverage are detailed on the policy itself. However, there are some exclusions that bear mentioning here. There is no coverage for injury or damage arising out of the use of an auto, aircraft, or watercraft (except for nonowned watercraft). There is no errors and omissions coverage in connection with the volunteer's professional services. Personal injury resulting from assault and battery committed by or at the direction of the registered volunteer is excluded. The care, custody, or control exclusion is in place on the policy. And, injury or damage by any person who is part of, or associated with, a work release or court-ordered program is also excluded.

Under the personal liability insurance coverage, the insurer will defend any covered lawsuit against the volunteer that seeks damages on account of personal injury, bodily injury, or property damage that exceeds any other valid or collectible insurance available to the volunteer.

Excess Automobile Liability Insurance

Lloyds of London is the underwriting company for this coverage. The coverage protects the registered volunteer driver for bodily injury or property damage claims arising out of their volunteer activities, including driving directly between the registered volunteer driver's residence and the work station. The liability policy is written at a combined single limit as respects bodily injury and property damage of $500,000 each accident. This insurance is in excess of the greater of: an amount equal to the applicable limits of liability of any other insurance collectible by the insured, or an amount equal to the minimum limit of liability required under the motor vehicle financial responsibility laws of the state in which the accident occurs (or $50,000, whichever is less).

A complete listing of all the exclusions is detailed in the insurance policy. The following is representative of losses that are not covered under the policy.

Liability assumed by the registered volunteer driver under any contract or agreement is not covered. Any obligation for which the registered volunteer driver may be held liable under any workers compensation or disability benefits law is not covered. There is no coverage for property damage to property owned or transported by the registered volunteer driver, or in his care, custody, or control. If the volunteer uses an automobile as a public livery conveyance, there is no coverage. Any obligation under any uninsured or underinsured motorist law, no-fault law, basic reparation benefits law, or any law requiring personal injury protection coverage is not covered. Finally, damage to the registered volunteer driver's own auto is excluded under the terms of the policy.

Under the excess automobile liability insurance coverage, the insurer has no obligation to defend unless and until it is determined that the insured must pay damages in excess of the retained limit. Should any auto claim appear likely to exceed the retained limit, no loss expenses or legal expenses shall be incurred on the insurer's behalf without the company's prior consent.

Frequently Asked Questions

The information put out by CIMA includes a series of frequently asked questions about the volunteer insurance coverage program. Some of these questions and answers are reproduced here.

What kind of insurance coverages are available under this program? The company offers accident insurance, volunteer liability insurance, excess automobile liability insurance, and volunteer/employee dishonesty coverage. The first three coverages are on an excess basis unless the volunteer has no other insurance of that type; then, these CIMA policies are primary. The volunteer/employee dishonesty coverage protects the organization using the services of the volunteer against losses caused by the dishonest acts of a volunteer; also covered is the theft, destruction, or disappearance of money or securities.

If both volunteer liability and excess automobile liability policies respond to claims of physical injury and damage to another's property, why are both coverages needed? The volunteer liability policy specifically excludes claims involving the ownership, use, or operation of a motor vehicle. This lack of coverage is countered by the auto liability policy.

Does the volunteer liability insurance coverage protect a volunteer against an allegation of sexual misconduct or sexual abuse? The volunteer is entitled to a defense of an allegation of sexual misconduct or abuse, but the policy would not defend or indemnify the volunteer if wrongdoing is admitted or the allegations are proven to be true.

How much does the insurance coverage cost? Currently, the cost varies as per coverage. The accident insurance coverage is $3.75 per volunteer a year. Personal liability coverage is $1.72 per volunteer a year ($100 minimum policy premium). The excess auto liability coverage is $6.04 per volunteer a year ($100 minimum policy premium). The volunteer/employee dishonesty coverage is offered for a minimum annual premium of $203 which covers up to ten volunteers; additional volunteers can be added for a minimal additional premium. It should be noted that there also is a required $135 fee for membership in Volunteers Insurance Service before these volunteer coverage policies can be purchased.

Does an organization need to apply for each coverage, or may it elect just to insure the volunteers under the accident insurance coverage? The organization can insure the volunteers under all four policies, just one, or any combination of the four; but, the organization must insure all of its eligible volunteers under whichever coverage or coverages are selected.

Are all policies written on an annual basis? All policies are written on an annual basis, and the term runs from July 1st to July 1st. An organization that applies for coverage mid-term is issued a short term policy on a proportional premium basis, and then, that policy is renewed on July 1st each year.

When a volunteer is injured or is sued, how can he make a claim? All claims should be directed to CIMA, Woodbridge, Virginia, 800-468-4200. CIMA then notifies the insurance carrier for the actual handling of the claim.

Besides the volunteer coverage programs, what services are available to members who pay the $135 annual membership fee? The company maintains a library of information relating to management of risks in the nonprofit organization for the use of members. Researching available and appropriate insurance relating to volunteer activities and passing this information on to members is another service. The company also designs and administers insurance programs, compiles underwriting information, and provides consultation on risk management issues via a toll-free telephone number (1-800-468-4200).

Other Programs

There are special programs available for those individuals who are in a work release program or a court referred alternative sentencing program.

Under the work release program, accident insurance can be purchased for those in the program. QBE is the underwriting company for this insurance which pays up to $25,000 for medical treatment, hospitalization, and licensed nursing care required as the result of a covered accident. The insurance applies while the volunteer is traveling directly to and from, and while participating in, volunteer-related activities. Initial medical expenses must be incurred within 60 days of the accident and expenses are then covered for a one-year period following the accident.

Dental care is covered under this program up to $500 per tooth for accidental injury to teeth, with a maximum benefit per accident of $900. There is also coverage for up to $50 for repair or replacement of eyeglass frames and up to $50 for repair or replacement of eyeglass prescription lenses damaged as a result of a covered accident.

This insurance does not duplicate benefits payable under Medicare or any other valid and collectible insurance coverage.

Additional eligible accident medical expenses that are covered are: in-patient hospital services, physician services, out-patient services, and medical equipment and supplies.

In addition to the accidental medical coverage QBE will pay the following benefits for death or loss of limb or sight, occurring within one year after a covered accident: loss of life ($2,500); loss of both hands, feet or eyes, or any combination of two thereof ($2,500); loss of either foot or hand, sight of one eye ($1,250); and loss of thumb and index finger of the same hand ($625).

The policy does not cover any loss as a result of the following: war or any act of war; hernia of any kind; any bacterial infections not caused by an accidental cut or wound; any form of sickness or disease; an injury caused by flight in an aircraft, spacecraft, or ultra light; an injury caused by hang-gliding, parachuting, or bungi-cord jumping; an injury or accident occurring while a volunteer fireman, rescue squad member, or sports team member.

The court referred alternative sentencing program offers the same coverages and has the same exclusions.