Article
Managing Risks of Volunteers
Many public entities have come to rely on the generosity of volunteers to help provide services to constituents. Although the volunteer may be working side-by-side with staff—on the premises or independently with the entity’s knowledge—the relationship is different from the typical one of employer and employee.
This difference can lead to questions regarding MCIT members’ risk exposures and coverage related to volunteers.
4 Important Elements for Volunteer Management
When entities use volunteers, they should keep in mind four key points to help reduce risks.
- Policy: An organization should have policies and procedures related to volunteers. They should include who authorizes volunteers, for what volunteers are needed and how the entity will utilize the volunteers. Although volunteer needs vary, departments engaging volunteers should have the opportunity to provide input in policy development. Once policies and procedures are set, all employees and officials need to follow them.
- Registration: This is a key element when securing volunteers for any situation, as it confirms that the entity and volunteer have been in contact. Registration can vary from a sign-in sheet to applications and interviews. Registration also is a prompt for MCIT’s coverage if there is a claim involving a volunteer.
The type of registration varies by the type of volunteer. Obviously in an emergency situation, gathering volunteers needs to be completed on short notice. Registration may be as simple as reporting to a county location to sign in with one’s name. Additional information such as address, phone number and emergency contact should be kept separate as private data.
A medical-services or law enforcement volunteer should go through a more detailed registration, such as completing an application, an interview and a background check. Their duties could involve exposures that bring more risk to an organization.
The important key is that the entity knows who its volunteers are.
- Direction: Volunteers are expected to be acting on behalf of, subject to the direction of and under the control of the entity. Volunteer duties need to be assigned by the entity. Entities must plan what types of volunteers are necessary for various jobs. The volunteer needs to be placed in a position that is a good fit for him or her.
Direction of volunteers helps keep an entity in control of volunteers’ activities. At the time of registration, an entity representative must evaluate the volunteer. For example, the volunteer needs to be in the proper condition to perform certain tasks or may need to wear proper clothing or footwear.
Once volunteers complete duties for an entity, there may be opportunities to debrief and discuss their experiences. Valuable information can be gathered for future volunteer engagements.
- Training: The type of volunteer work may dictate the type of training a volunteer may need. Most emergency management activities, such as sandbagging and general storm clean up, require volunteers who are in reasonably good shape to handle the heavier work. In these situations, the training may be as basic as good lifting practices. A sheriff’s posse member on the other hand, needs more specialized training, such as riding a horse, and search and rescue skills. This differs from a dive team that needs specific water training. A reminder is that all law enforcement training for specialized volunteer groups must be at the direction of the sheriff or chief law enforcement officer.
Volunteer Coverage Liability
MCIT includes volunteers in the definition of “covered party” for liability coverage. Therefore, MCIT responds to liability claims on behalf of the member and its authorized volunteers.
This coverage applies only to claims occurring from acts within the scope of the volunteer’s duties on behalf of the member.
Auto Liability and Physical Damage
A fundamental rule of auto liability coverage is that insurance follows the vehicle. MCIT responds to claims caused by volunteers driving member-scheduled vehicles with the express permission of the member for work purposes. Both liability coverage and physical damage coverage apply to a scheduled vehicle if involved in an incident when a volunteer is driving.
The volunteer’s personal auto insurance must respond to claims that occur while he or she is driving his or her own vehicle even when it is to perform work for the member. For claims that exceed the volunteer’s own liability limits, the member’s hired and nonowned auto liability coverage provides protection consistent with limits as provided in Minnesota Statutes, Chapter 466.
MCIT provides no physical damage coverage for a volunteer’s vehicle or deductible.
Workers’ Compensation
Under the Minnesota Workers’ Compensation Act, Minnesota Statutes, Chapter 176, a volunteer is an individual who receives no remuneration or compensation in exchange for services rendered. This compensation does not need to be monetary and must be specifically for services rendered as a benefit.
For example, providing a meal to volunteers cleaning up a park may not make them employees, but giving them a gift card at the end of the cleanup may make them employees eligible for workers’ compensation benefits.
The Workers’ Compensation Act extends coverage to certain volunteers for public entities. These volunteers include certain law enforcement, public safety, first responders and health volunteers. See Workers’ Compensation Coverage for Volunteers.
Personal injuries that occur while volunteering may be eligible for coverage under the member’s medical payments coverage or liability coverage, depending on the situation and the cause of the injury.
Property
Personal property belonging to a volunteer may be eligible for MCIT property coverage, depending on the property in question. Contents coverage is available for property used for the benefit of the member up to a maximum of $5,000 per loss occurrence when the property is not scheduled.
For example, coverage can extend to loss or damage to a volunteer’s laptop computer if the member has approved its use as necessary to the volunteer’s duties with a work-related purpose. Any resulting claim would be valued on a cost replacement basis, subject to the member’s property deductible. Higher-value volunteer items can be added to the member’s property schedule.
Coverage may also be available under MCIT’s electronic data processing coverage if the volunteer’s electronic personal property is used at locations other than a member’s scheduled buildings. Members should discuss coverage options with their risk management consultant.
The four key elements and coverage considerations are included in the questions and answers that follow.
A volunteer is defined as a person who performs or offers to perform a service voluntarily and without
the expectation of compensation. Volunteers can be retirees, students or unpaid interns. There can also
be specialized volunteer positions, such as driver, caregiver, medical-services worker, peace officer or
posse member.
It is also important to recognize that services can be provided that appear to be on a volunteer basis but actually are not because the individual does not meet the criteria for a volunteer. Inmates on work release or completing community service for a sentence are not considered volunteers. They are completing a mandatory service due to a sentence. Any claims are handled the same as if they are inmates according to Minnesota Statute 3.739—Injury or Death of Certain Inmates or Persons.
Volunteers for another organization, such as the Red Cross, completing tasks for the member are not the public entity’s volunteers. Rather, they are the other organization’s (e.g., Red Cross’) volunteers. If the person is registered with and directed by another organization, that person is not the public entity’s volunteer.
Interns are likely college students gaining supervised practical experience by working with the entity. They are completing their studies while gaining credits for their degrees. Because the educational institution selects interns and maintains involvement with them, MCIT recommends having an agreement with the school.
Interns who are paid a wage are generally considered employees. Most public entity interns do not receive wages, thus are considered volunteers.
Unpaid interns are similar to nonemergency volunteers in that they are not eligible for workers’ compensation if they are injured while performing duties.
For additional information on managing interns see Interns, Coverage and Risk Management.
Note: For the remainder of this article, the term “volunteer” includes unpaid interns.
An entity may be liable for its volunteers’ activities. Every municipality is subject to liability for its torts, and the torts of its officers, employees and agents while they are acting within the scope of their employment or duties whether arising out of a governmental or proprietary function. A public entity volunteer would likely be considered an agent of the public entity under Minnesota Statute 466—Tort Liability, Political Subdivisions.
A public entity may be required by law to defend and indemnify its volunteers for claims brought against them while they were performing duties as volunteers, provided that volunteers are not guilty of malfeasance, willful neglect of duty or bad faith.
The statutory caps on damages and immunities would likely apply to claims brought against an entity or volunteer in a state tort claim. The tort caps are currently set at $500,000 per claimant and $1.5 million
per occurrence.
As noted, authorized volunteers are covered parties. The definition also includes the member’s law enforcement personnel. This can include volunteer groups that operate under the direction of the sheriff or chief law enforcement officer, such as posses, response teams or dive teams.
An authorized volunteer is a person registered with and approved by the entity to do volunteer work. By registering an individual, the entity acknowledges the individual as a volunteer and accepts responsibility for his or her volunteer activities.
Generally, workers’ compensation coverage does not apply to the injuries of volunteers because they do not meet the definition of an employee found in the workers’ compensation statute. This means a volunteer, such as for a park, library or office, or as a driver, is not eligible for workers’ compensation if he or she is injured while volunteering.
MCIT recommends that entities make clear to volunteers that they are responsible for any expenses related to injuries received while volunteering for the entity. However, MCIT’s medical payments coverage (up to $2,500) could apply to a situation involving a volunteer.
For more information, see the Workers’ Compensation section above and Workers’ Compensation Coverage for Volunteers.
Volunteer duties may include driving one of the entity’s vehicles. As noted, volunteers are a covered party for liability, including automobile liability.
Volunteers using their own vehicles should be aware of and acknowledge their understanding that a basic rule of Minnesota automobile insurance is that insurance on the vehicle follows the vehicle. The primary coverage responding to a claim is the vehicle owner’s insurance. In other words, the volunteer’s personal auto policy would respond if the volunteer had an accident with his or her own vehicle while volunteering.
Minnesota law requires that automobile owners carry insurance in an amount not less than:
- $30,000 for injury per person
- $60,000 for injury to two or more persons
- $10,000 for property damage
MCIT’s nonowned auto liability could be excess if the primary limits of the volunteer’s policy are exhausted. Nonowned auto liability coverage applies to vehicles owned by the volunteer or a family member as defined in the MCIT Coverage Document. For example, a volunteer uses his or her own vehicle for a task on behalf of the member and is involved in a serious at-fault auto accident. The volunteer has insurance coverage of $100,000 combined single limits for liability. The other driver’s bodily injury and property damage exceeds that amount. MCIT’s automobile liability coverage responds on an excess basis up to the tort cap limits.
MCIT’s property coverage offers a sublimit of coverage of $5,000 for the personal property of an officer, employee or volunteer at a scheduled location. Coverage is subject to the property deductible. MCIT coverage only applies when the volunteer’s equipment is used for a work purpose.
The volunteer’s use of personal equipment should be approved by the entity before it is used in a volunteer situation. Members should make sure equipment is in good working order and that the volunteer is trained to use it properly.
Generally if the entity’s money or property is stolen from within the organization, the employee dishonesty bond applies to this loss, as the entity has suffered a financial loss. The MCIT employee dishonesty bond defines who is considered an “employee.”
Employee: An individual in a member’s service and for 30 days after termination of that service whom the member compensates directly by salary, wages or commissions and whom the member has the right to direct and control while performing services for the entity. The definition includes elected and appointed officials, anyone sitting on a member’s governing board, commission or committee and a substitute for a permanent employee on leave.
Volunteers do not fit this definition. As a result, if a volunteer were to steal an entity’s property or money, the theft would not be covered under the bond and the entity would not be compensated. MCIT recommends limiting volunteers’ access to money and property.
Loss Prevention and Risk Management Recommendations
Understanding how coverage applies when a claim occurs is only part of operating a successful volunteer program. It is also important to take steps to mitigate losses or prevent them from occurring. MCIT recommends that members develop policies and procedures that address volunteer issues. Consider the following risk management advice:
- Evaluate volunteer needs, how they will be utilized and who is in charge of them.
- Evaluate the risks surrounding the use of volunteers, ensuring that both the community and volunteers are safe.
- Follow policies and procedures for managing volunteers.
- Establish procedures for registration, depending on the type of volunteer duties.
- Maintain a file for each volunteer that includes essential information, including name, address, telephone numbers, emergency contacts, etc.
- Develop driver qualifications and apply them consistently
- Obtain a copy of each volunteer’s driver’s license if driving is part of his or her duties
- Obtain proof of auto insurance if volunteers are using their own vehicles for the member’s purposes.
- Advise volunteers that they are responsible for physical damage and liability losses resulting from the use of their personal vehicles.
- Check all vehicles for safety.
- Consider a waiver for each volunteer activity outlining the risks and requesting that volunteers acknowledge those risks and agree to be responsible for their own injuries and damages that occur while volunteering.
- Conduct reference checks on volunteers.
- Invite volunteers to orientation and training, such as safety meetings, defensive driving courses, and first aid/CPR sessions.
- Follow the entity’s volunteer procedures for registration, direction for the scope of duty and training of volunteers.
- Offer personal protective equipment to volunteers as you would to employees, if appropriate.
- Control emergency sites at the entrance for registration.
- Control egress from an emergency site for an opportunity to debrief volunteers.
- Maintain clear descriptions for volunteer positions, including responsibilities and expectations.
- Limit a volunteer’s exposure to money and tangible property.
- Promptly report any incident or claim involving a volunteer to MCIT.
- Conduct accident investigations when a volunteer is involved.
- Advise volunteers that they are responsible for their personal property if it is not used for the benefit of the member. Schedule volunteers’ property with a value in excess of $5,000 when appropriate.
- Do not make payments to volunteers that could cause them to be viewed as an employee by the workers’ compensation courts system. An injured volunteer could claim that he or she is an employee because the individual received compensation in the form of stipends, bonuses or maybe a turkey on Thanksgiving. The courts may agree and require the member to pay benefits for the volunteer’s injuries.
If members have questions concerning volunteers, they are encouraged to contact their MCIT risk management consultant toll-free at 1.866.547.6516.
Topics
