Many nonprofit businesses utilize volunteer drivers to aid in fulfilling their services and programs. Examples of this could be taking elderly people to doctor’s appointments or driving meals to someone who can’t leave their home. Unfortunately, using motor vehicles comes with a certain amount of risk. Non-profit drivers are covered by their own auto insurance to an extent, however costs can sometimes exceed their policy limits. In these cases, the nonprofit business would be liable. This is where volunteer vehicle insurance comes in.
What is Covered by Volunteer Vehicle Insurance?
Volunteer vehicle insurance essentially provides extra liability insurance where personal auto insurance drops off. This can help in the case of a catastrophic accident that has liability damages that exceed the volunteer driver’s personal auto insurance limit. Volunteer vehicle insurance also provides liability coverage if the volunteer driver’s insurance has lapsed or been cancelled.
What is Not Covered by Volunteer Vehicle Insurance?
Volunteer vehicle insurance generally just provides liability protection for the nonprofit business. It doesn’t apply to the volunteer driver or their vehicle. If the volunteer driver is injured in an accident or their vehicle sustains damages from an accident, their personal auto insurance is responsible for covering those costs.
If you own a nonprofit business and you utilize volunteer drivers, you need to make sure your business is safe in case something goes wrong. Volunteer vehicle insurance can make a huge difference!