Sometimes a nonprofit organization needs its volunteers to drive their vehicles. Relying on a commercial auto insurance policy rather than vehicle insurance for volunteers may be a mistake. Commercial auto insurance offers protection only if the volunteer drives the nonprofit’s vehicle but not the volunteer’s personal vehicle.
The insurance firm VIS Volunteers states organizations can save time and money protecting their volunteers separately from other insurance policies. A non-owned auto insurance policy covers volunteers when they drive their personal vehicles for the nonprofit. This keeps the nonprofit safe should the volunteer not have adequate auto insurance or have no coverage at all. Ideally, the volunteer’s personal auto insurance policy steps in, but sometimes that does not happen. This protection is specifically for the nonprofit but not the volunteer.
Depending on the state the nonprofit operates in, the volunteer may have limited liability in the event of an accident. Some of these protections step in when the volunteer drives a vehicle for the nonprofit while others exclude operating a motor vehicle.
Having vehicle insurance for volunteers ensures that the nonprofit has the necessary coverage should the volunteer have an accident while performing duties for the nonprofit. Multiple coverages protect the organization’s liabilities so that volunteers can continue to help the organization move its mission forward.