Many nonprofits rely on volunteer drivers to help fulfill their programs and services. Whether the drivers are taking seniors to medical appointments or bringing meals or library books to those unable to leave their homes, opportunities abound for volunteers to fill a much-needed gap in transportation services in our communities.
Nonprofit leaders are often concerned that they may be putting either volunteers or their nonprofit at risk because of the inherent danger connected with motor vehicle accidents. However, we are not aware of any study that demonstrates that the use of volunteer drivers is somehow more risky than other activities involving motor vehicles.
One factor that does seem to be an indicator of an increased risk of accidents is that a motor vehicle accident is more likely to occur when the driver is driving an unfamiliar vehicle—an indication that volunteer drivers who drive their own cars may be less risky than if the nonprofit staff were to ask a volunteer to drive an unfamiliar van or car owned by the nonprofit.
We are often asked, “Who can drive my nonprofit’s vehicles?” The answer is that with the nonprofit’s permission, anyone may use a vehicle owned by the nonprofit. No matter who is driving—employee or volunteer—the nonprofit’s commercial auto insurance policy will apply to any accidents involving vehicles owned by the nonprofit. The policy should be examined closely. A nonprofit’s commercial auto policy has three components: liability, physical damage on the vehicle itself (collision and comprehensive coverages), and medical payments for injuries to occupants of the nonprofit’s vehicle. Nonprofit policy holders should review their policies with their brokers or agents to determine which specific losses are covered and where coverage gaps might lie. For instance, you might assume that your nonprofit’s auto policy would provide coverage in the event a van were stolen, when in fact the coverage may exclude theft completely. The nonprofit’s auto insurance will generally cover all vehicles both owned by the nonprofit. Many nonprofits also have coverage for “non-owned” vehicles (such as those that are leased or rented by the nonprofit or personal vehicles driven on the nonprofits’ behalf).
It is important to note that volunteer drivers, while using their own cars, will be covered initially by their own personal auto insurance. A volunteer’s personal auto insurance for his/her own car will cover anyone named in a lawsuit arising out of the use of the personal auto, therefore, the nonprofit may also initially be covered by the volunteer driver’s policy. However, in cases where a catastrophic injury occurs to someone, such as a passenger or pedestrian when a volunteer driver is using her own car, the damages might exceed the driver’s personal auto insurance limits. In that case, the nonprofit itself is vulnerable if it is named in a lawsuit resulting from the accident. Moreover, while a nonprofit may assume that a volunteer driver has adequate personal auto insurance, that may not be the case. Non-owned auto insurance will also cover the nonprofit if the volunteer driver’s personal auto insurance policy has lapsed or been cancelled. For this reason, many nonprofits purchase non-owned auto liability insurance.
Non-owned auto liability insurance covers liability for accidents caused by an employee or volunteer driving their own vehicle on a nonprofit’s behalf. The coverage is designed to protect only the nonprofit organization, not the employee or volunteer. Coverage applies above the liability limits of the vehicle owner’s personal automobile policy. There is no coverage for damage to the vehicle that is not owned by the nonprofit. To really circle the wagons and close the coverage loop, some carriers will provide an endorsement on non-owned auto policies that add the volunteer who drives his or her own car on the nonprofit’s business as an additional insured under the nonprofit’s non-owned auto policy. This provides coverage in excess of the volunteer’s own policy limits.
Non-owned auto insurance is critical for any nonprofit that uses volunteer drivers who drive their own cars, or those nonprofits that expect employees to use their own cars for work-related transportation.
Some state laws limit volunteer liability when volunteers are providing services for tax-exempt charitable organizations, however, exceptions abound. For instance, in many states while there may be protection for volunteers, the protection does not apply when volunteers are operating motor vehicles. In other states, the protection does not apply at all. For a summary of state liability laws relating to volunteer transportation programs, download our free mobile app, VolunteerProtect!, or read “Information for State Volunteer Driver Liability Laws” by the National Conference of State Legislatures.
Your nonprofit should take special precaution depending on the nature of each volunteer driver’s role. For example, volunteer drivers who provide transportation to children or vulnerable adults should receive special training compared to volunteer drivers who simply transport materials–not passengers–for your nonprofit. Factors like these should shape the volunteer driver screening process, as well as orientation and training.
Screening volunteer drivers is an important risk management process that demands attention. Nonprofits that use volunteer drivers must determine the level of screening that is appropriate for the role that volunteer drivers will play. For instance, drivers who transport clients, especially minor children, and those transporting multiple clients in vans, should be subject to much more stringent screening, background checking, and supervision, than a volunteer who simply transports equipment or materials for the nonprofit. Ask your insurance broker or agent whether your nonprofit’s commercial auto insurance carrier provides guidance on screening procedures for volunteer drivers.
These straightforward tips can be applied by every nonprofit to manage the risk that an unprepared driver will be behind the wheel.
Consider using a Volunteer Driver Pledge to manage your volunteer drivers’ expectations and enlist their cooperation for a safe transportation program. Feel free to use and customize this sample Volunteer Driver Pledge:
As a volunteer for [Name of Nonprofit], I understand that my safety and the safety of others is paramount. I understand that driving as a volunteer is a privilege, not a right, and therefore, I agree to:
And, if involved in an accident, I agree to complete an Accident Report provided by [Name of Nonprofit] and to cooperate with the police, my supervisor, and [Name of Nonprofit]’s insurer, its insurance adjusters and attorneys.
I pledge that if I drive my own vehicle on behalf of [Name of Nonprofit], I will maintain adequate personal auto insurance. I also understand that as a volunteer driver, my personal auto insurance will be activated for any accidents or incidents that involve my vehicle, including those that occur while I am serving as a volunteer driver for [Name of Nonprofit].
The Nonprofit Risk Management Center team is grateful to David Szerlip, an insurance specialist serving the nonprofit sector, for assistance with this article.