How to Cover Volunteers or Employees Who Drive Their Own Cars for Your Nonprofit

Most nonprofits have employees or volunteers who drive their own cars for the organization.

It happens all the time. The volunteer runs to the store to grab donuts for the early morning work party. The employee drives to the bank to drop off that fat check from the anonymous donor who obviously is ridiculously loaded.

Those vehicles are considered ‘nonowned autos.’  They are being used for your nonprofit, but they are not owned by your nonprofit.

If you’ve bought yourself a well-tailored insurance policy for your nonprofit, then you should have a liability policy in place to address hired (rented) and nonowned auto liability.

Here’s a snapshot of the coverage: It provides coverages over the employee’s or volunteer’s personal auto policy, BUT it only protects the organization.

Example:

  • Your employee causes a wreck on the way to the bank.
  • Your employee’s personal insurance would defend both her and your nonprofit until those limits were exhausted, depleted, and tapped out.
  • Your nonowned auto liability would kick in at that point and defend and pay damages on behalf of the nonprofit only, not on behalf of the employee or volunteer. In other words, if your employee were still involved, her personal assets might be at stake.

The Problem

The problem is that the employee or volunteer is left out in the cold. The organization is being defended, but the individual might not be.

The Solution

There are two endorsements (the insurance word for policy change forms that can add or take away coverage).

Employees as Insureds (ISO CA 99 33 10 13): This endorsement makes an employee an insured in the situation listed above.

Social Service Agencies – Volunteers as Insureds (ISO CA 99 34 10 13): This endorsement offers the same possibility for a volunteer driving a nonowned auto. 

You Might Have to Ask

These two policy forms might not automatically come with your policy. You might have to ask for them.

So ask.  It can’t hurt.

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The above issue can be a little confusing. If you have specific questions, more than likely someone else does too. Please let them in the comments below.

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