(December 2020)
Volunteer workers are very important and special resources to the organizations to which they commit their time, talent, efforts, and resources. As a result, those organizations have a vested interest to be certain that their volunteers are protected financially if they are injured "on the job." The issue is whether that organization's workers compensation insurance covers those "on the job" injuries. If it does not, the question is how to protect those workers properly.
States treat this situation differently. The workers compensation law for a given state must be reviewed carefully to determine if a volunteer qualifies for workers compensation coverage in that state. In addition, not all volunteer workers are treated the same. This makes the analysis more difficult and all the more important.
The basis to determine the premium charge must be developed and applied when volunteer workers are covered under workers compensation insurance. This charge is usually based on the rate for the classification that would apply multiplied by the amount of pay the volunteer would receive as a regular employee. A given state may prescribe a different approach. In most cases, volunteer workers are classified the same as paid employees.
Some state laws do not permit workers compensation insurance to cover volunteer workers. Several other coverages or approaches are available and may apply in these situations.
Volunteers are eligible for medical payments coverage. Other coverage is available only through a claim or legal proceeding that alleges negligence.
A frequent question is whether volunteers involved in automobile accidents during the course of their duties as volunteers are covered. The answer may be yes, if the organization the volunteer works for has CA 99 03–Auto Medical Payments Coverage on its commercial auto policy. The wording in the insuring agreement should respond to situations where volunteers in their capacity as volunteers drive or ride in vehicles that the organization owns. However, commercial automobile policies also have several exclusions that may apply in other cases, as follows:
· Bodily injury that occurs while occupying a vehicle being used as a premises
Note: In other words, coverage does not apply if the volunteer is injured while the vehicle is stationary and being used as a premises or location.
Some volunteer groups offer or provide discounted group disability coverage to all members of the group. The policy applies to only activities associated with the group. This method can be especially effective with groups involved with athletic-type activities.
In many cases, the only coverage available to volunteer workers for accidents or injuries is the coverage their own insurance policies provide. These could be personal auto policy medical payments and individual health insurance plans.
Volunteers may be asked to sign waivers or hold-harmless agreements to release their organization from liability for their accidents or injuries. They must then obtain their own coverage, such as individual health insurance. While this is not the approach most charitable organizations want to take, it may be the one that is most cost effective.
These organizations must also consider whether these agreements are completely reliable and valid. It is difficult to determine if persons signing these agreements understand what they mean.
Other situations that complicate matters include agreements that are signed by or on behalf of legal minors. Some states do not allow parents or guardians to waive the rights of minors. In addition, a health insurance company or another party may exercise its rights to subrogate against the organization.