Introduction

Action Ideas That Work

Volunteer Driver Training Program
    Welcome / Introduction
    Who Are We Serving,
    Who Are We
    Challenges for Caregivers in
    Regards to Transportation
    Potential Challenges for
    Volunteer Drivers
     - Listening
     - Communication
     - Sensitivity
     - Preventing Agitation
     - Dealing with Agitation
     - Providing Physical Assistance
     - Boundaries
     - Safety Considerations for
       Volunteer Drivers
     - Emergency Procedures
   Transportation Specifics
   for Leaders
     - Risk Management
     - Insurance for Volunteers
     - Insurance and Liability
       Concerns
    Materials Needed to Teach
    Conclusion

Resource Sheets

Resources / Links

Insurance for Volunteer Transportation Programs

In all cases, a volunteer transportation program should seek advice and counsel from a professional insurance agent or broker concerning its insurance requirements and preferences.

Business Auto Coverage: The “business auto policy”, also called the “business auto coverage form” or “commercial auto policy”, provides liability coverage and physical damage coverage. All volunteer transportation providers should purchase some form of auto coverage. Organizations that rely on vehicles owned by employees and/or volunteers should purchase “non-owned” auto coverage. Non-owned and hired auto liability coverage is typically the only auto coverage a nonprofit will require if it does not own any vehicles. Auto liability is sometimes referred to as “third party” coverage, because it protects the first party (the buyer of the policy, or nonprofit) from suits or claims filed on behalf of third parties – the person(s) who suffered bodily injury or property damage. The other main coverage provided in the BAP is “physical damage” coverage. The most common types of physical damage coverage are “collision” coverage and “comprehensive” coverage. As the name implies, collision coverage pays for loss to a covered (insured) auto or its equipment caused by the covered auto’s collision with another object or overturn. “Overturn” is an insurance term that refers to an auto rollover. Most physical damage losses are collision claims. It’s important to remember that when a volunteer or program staff member is driving their own vehicle on the organization’s behalf and is involved in an at-fault accident, the volunteer or staff member’s personal insurance will respond first. The organization’s non-owned auto policy will respond if and when the limits of the driver’s personal experience have been exhausted.

Commercial General Liability (CGL): The CGL is designed to cover the liability exposures that are common to all organizations, from large corporations to small nonprofits. The policy is a combination of three separate coverages, each with its own insuring agreement and exclusions. The 3 coverages are:

1. Coverage A: General Liability (Bodily Injury and Property Damage). Covers liability for all bodily injury and property damage caused by an accident, except for liabilities that are specifically excluded. Exclusions include liabilities more properly covered under a separate policy, such as automobile and workers compensation, and liabilities considered uninsurable. Some of the liabilities covered under CGL policies include: injuries arising from your premises, injuries to riders under your supervision, injuries to volunteers while working for you, injuries to participants at special events, and damage to property not owned by you or in your possession.
2. Coverage B: Personal Injury and Advertising injury Liability. Personal Injury and Advertising Injury Liability cover a specific group of liabilities that do NOT involve bodily injury or property damage, are not caused by an accident, and therefore are NOT covered under Coverage A. These liabilities are: libel, slander, false arrest, malicious prosecution, wrongful eviction, wrongful entry, violation of privacy, infringement of copyright, and unauthorized use of an idea in advertising.
3. Coverage C: Medical Payments. Medical Payments is not liability coverage, but rather ACCIDENT coverage, with a standard maximum limit of $5,000 per person. It covers injuries from accidents at your premises, or at your activities off-premises, regardless of your liability. Medical Payments insurance excludes injuries to employees, or those arising from automobile accidents and athletic activities.

Director’s & Officer’s Liability (D&O): D&O policies provide coverage for ‘wrongful acts’. The major difference between the CGL policy and the D&O policy is that nonprofit D&O policies exclude bodily injury and property damage. The most common claim filed under a nonprofit D&O policy is a claim alleging wrongful employment practices. Other examples of claims include those from donors alleging misuse of funds, and claims from advocacy groups for the disabled alleging ADA (Americans with Disabilities Act) violations. Make certain that your D&O policy includes coverage for a wide range of employment-related claims. Other key considerations in choosing a D&O policy include making certain that the policy has a broad definition of “insured” that includes the nonprofit itself, and that common exclusions such as ‘insured vs. insured’ and ‘emotional distress’ have been deleted.

Professional Liability: Many nonprofits are exposed to claims alleging negligence in the delivery of professional services, such as counseling, nursing/ medical services, referral services and more. Every agency should discuss its need for this type of coverage with a competent insurance professional (agent, broker, or consultant).

Accident Insurance: Accident policies are relatively inexpensive policies that finance cost of medical treatment for individuals (volunteers and/ or participants) who are injured while delivering services for or receiving services from an organization. These policies usually pay the costs of emergency room services and follow-up treatment to predetermined limits based upon the kind of injury. For example, a broken leg many have a limit of $2,500, while an eye injury might be limited to $1,500 unless the injury resulted in the loss of sight in the eye, in which case the limit may be $15,000 (these amounts are hypothetical and intended for illustrative purposes only). Usually these policies do not have deductibles. Note: an accident and injury policy does not respond to illness nor does it protect the organization from liability for the injury. One distinctive feature of an accident policy is that it will pay a claim regardless of who is at fault. These policies are generally written as “excess insurance”, meaning that they pay only after other available insurance – generally the insured’s personal health insurance – is exhausted. If the volunteer or rider is uninsured, the accident policy would “drop down” and become primary coverage for the injury. Accident policies provide affordable coverage for an organization concerned about volunteers or riders who may be uninsured or underinsured for injuries while volunteering.