The dreaded “L Word” – managing liability in a volunteer-based organization

Does this sound familiar? Someone in your organization has an idea for a great new program – something that can enhance the mission and meet a real need in your community – but concerns are raised about liability. “Yes, it would be great to start a transportation program (or a feeding program, after-school activities for kids, etc.), but what’s our liability if we do that?”

Fear of the unknown is understandable. The good news is that liability usually can be managed, and you can put that “L Word” in its place.

What does the word mean? Liability is a situation in which the volunteer and/or the organization is held responsible for bodily injury or property damage. (There are other kinds of liability also, but for purposes of this article we’ll stick to bodily injury and property damage.) If there is a lawsuit, it will say your volunteer was negligent, or your organization itself was negligent. Here is a working definition of “negligence”:

You did not do something you should have known to do, or you did something you should have known not to do.

If you did not properly screen, train or supervise the volunteer who’s involved, that is how liability might extend to your organization. The charges might not be valid. People are sued all the time for things they didn’t do. But it’s important to create an environment – you might say a culture – where the chances of a liability claim are as low as you can make them. Some practical steps to help shield you from a charge of negligence:

• Risk identification – Get your best minds together and brainstorm the question, “What could possibly go wrong in your operation that might result in bodily injury to someone (including the volunteer) or property damage?” Don’t stop until you have at least 30 scenarios, then rank them A, B, C or D, with the screaming disasters that could put you out of business getting an “A.” Then develop written procedures designed to eliminate or minimize your risks. (If you would like more guidance on how to do this, please go to VIS Volunteers, scroll down to “Volunteer Management Documents,” and download “Fundamentals of a Volunteer Risk Management System.”)
• Background screening – Perform a criminal background check on any volunteer who would be working with vulnerable clients, a credit check on any volunteer who would be handling money, and a Motor Vehicle Record check on any volunteer drivers. It shows your due diligence. Sure Check Background Screening is one source with a specialty in nonprofit organizations. Maggie Benson, Sure Check president, notes that “a comprehensive background check adds an essential layer of protection for both the organization and the people it serves. It helps identify potential risks before they become problems — preventing harm, protecting the population you serve, and giving everyone greater peace of mind.”
• Training and accountability — Even if the background screen indicates no problem, your volunteer still needs to follow your rules, which you develop based on the risk identification you have done. Empowering volunteers to make their own decisions can create risk exposures that can hurt you, so emphasize your risk management program in orientation and training. If a volunteer refuses to follow your rules, hold him or her accountable, just as you do your paid staff. Remember the definition of “negligence”: always put your organization first, and don’t let a stubborn volunteer create a problem.
• The insurance piece – Although insurance companies usually include volunteers in the organization’s commercial general liability policy at no additional cost, you should not accept that. Insure your volunteers with a separate liability policy, so you are not sharing your organization’s own limits of liability with volunteers. (Click on “Member Benefits” at VIS Volunteers to learn more)
• If something bad happens, learn from it – Were procedures being followed? If not, why not? Should any part of your risk management system be modified? Investigate thoroughly and put your insurance company on notice. Liability claims often are slow to develop, and your insurance contract requires that you report claims in a “timely” way. Don’t wait for a situation to blow over, and don’t let your attorney decide whether to report the claim.

Yes, the “L Word” can usually be managed. It doesn’t need to keep your organization from being the best you can be for those you serve.

About VIS

Volunteers Insurance Service Association, Inc. (VIS) was established in 1972 for the purpose of providing insurance and risk management services for volunteer-based organizations. Contact us at (800) 222-8920, or volunteers@visvolunteers.com, for more information on our programs and services. VIS is an official partner of Better Impact.