The soaring unemployment rates over the last couple of years have caused a large number of people to decide to use the time off work to volunteer with nonprofit organizations. With many charitable organizations, schools, and libraries facing cuts in funding, the help offered by volunteers is needed. However, using volunteer labor can also be risky for nonprofits. Volunteers can be injured or injure somebody else in the course of their duties. Particularly risky is asking volunteers to operate a motor vehicle. Bruce Thomas, CIC, CPCU, CRIS, discussed the subject at the Massachusetts Association of Insurance Agents (MAIA) 2009 convention.
Arguably, the biggest risk is that the volunteer could be responsible for an accident that injures other people or damages property. How would business auto coverage respond? The definition of insured under the business auto policy includes the named insured and “anyone else while using with your permission a covered ‘auto’ you own, hire or, borrow.” That would include a volunteer. Still, how the policy would respond depends on whose car is being used and which symbols the insured selected.
It is not uncommon for volunteers to use their own cars to run errands for the organization – maybe they need to go to the post office or deliver food to a housebound client. In that case, the organization would be covered for any liability it might have for an accident only if it had selected Symbol 9 (nonowned autos) or Symbol 1 (any auto). Otherwise, the volunteer’s car
would not be considered a covered auto under the organization’s policy. If the organization has any intention of letting volunteers drive their own vehicles, it is vital that they select either Symbol 1 or Symbol 9.
As for the volunteer, his or her liability would not be covered under the organization’s auto policy, unless coverage was added by endorsement. The organization might want to require the volunteer to rely on his or her own personal auto policy, which should respond. The volunteer should think about whether it’s worth the risk.
If the volunteer caused an accident using a car owned by the organization, the business auto policy would generally provide coverage for both the organization’s and the volunteer’s liability for the accident. That’s assuming that the organization selected Symbols 1, 2 (owned autos), 3 (owned private passenger autos), 4 (owned autos other than private passenger autos), or 7 (specifically described autos) and the auto being used matched the selected symbols. The volunteer’s personal auto policy might provide coverage for the volunteer’s liability on an excess basis, but the organization’s policy should be primary. Thomas noted, “ primary coverage follows the car.” In other words, the first policy to be triggered is the one covering the car, not the one following the driver.
If the volunteer is driving a car rented
by the organization and the organiza-
tion had selected Symbol 1 or 8 (hired
autos), the liability of the organization
and the volunteer should be covered.
If, however, the volunteer rented the
vehicle in his or her own name, matters
would be more complicated. It would
typically not be considered an auto
that was hired, rented, or borrowed by
the named insured and would not be
covered by Symbol 8.
Endorsement CA 99 03, Auto Medical Payments Coverage, provides coverage for medical and funeral expenses for an insured injured in an accident. “Insured” includes the named insured and “anyone else ‘occupying’ a covered auto.” With the endorsement, there should be coverage for a volunteer’s medical expenses following an accident in a vehicle owned or rented by the organization.
According to Thomas, an organization that allows volunteers behind the wheel should not only have the endorsement, but should ask for high limits. The premium increase is relatively small.
The endorsement pays only medical or funeral expenses. There would be no coverage under the auto policy for the volunteer’s loss of future wages or other nonmedical expenses related to the accident.
Anytime a volunteer gets behind the wheel of a vehicle as part of his or her duties for a nonprofit organization, there is a risk that the volunteer could accidentally hurt himself or herself or
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