• D&O Insurance
• Volunteer Insurance

Q: Why does a nonprofit organization need this insurance?

• In a recent survey by Watson Wyatt Company, 36% of the 726 associations and other nonprofit organizations surveyed had had a directors and officers liability claim in the past ten years - more than double the percentage that had had a claim in the preceding ten years. The greatest increase of claims activity is among smaller organizations.
• The same survey indicated that the average defense cost for a D&O claim is $114,000. What would an unexpected and uncovered expense of $114,000 do to your organization, and your individual directors, if you could not indemnify them?
• Your organization's commercial general liability (CGL) policy does not cover "wrongful acts," in all likelihood. Its coverage is limited to bodily injury and property damage.
• The federal Volunteer Protection Act of 1997 does not eliminate the need for nonprofit D&O insurance. That law often does not protect the organization itself, or staff. Nor does it protect the individual volunteer against allegations of violations of federal civil rights laws (the most common source of claims), or against claims of "gross negligence," or against automobile-related liability. Plus, even if a volunteer is totally blameless, he or she still can be sued, and will incur defense costs.
• State "immunity" statutes vary, and often protect the nonprofit only if D&O insurance has been purchased.
• Your organization can be sued for a wrongful act by anyone with any interest in the chapter's activities. These can include employees, members, one director against another, vendors, governmental authorities and others. Without nonprofit directors and officers coverage, you must pay for your own defense, even if you are proven blameless.
• Nonprofit D&O coverage is much less than it would be in the case of for-profit organizations.

Description of the features of the D&O Liability Insurance available through CIMA.

Go directly to D&O application.

Volunteer Insurance:

Q: What kind of insurance coverages are available?
A: VIS insurance program includes four coverages - accident insurance, volunteer liability insurance, excess automobile liability insurance, and volunteer/employee dishonesty coverage:

• Accident Insurance -- provides excess accident medical insurance directly to a volunteer when he or she is injured traveling directly to or from, or participating in, volunteer activities. "Excess" simply means that if the volunteer has other insurance, such as Medicare, that insurance would be primary, and the coverages provided by our policy would be in excess of Medicare and any supplemental policies in force. In the event that a volunteer has no other insurance coverage, our coverage would be primary.

• Volunteer Liability and Excess Auto Liability -- A volunteer's actions may cause physical injury to another, or damage to another's property. If the injured party feels that their injury or the damage to their personal property resulted from the negligence of the volunteer, the volunteer may be sued. When this occurs, the volunteer will need to defend himself or herself, and if judged negligent will be responsible for the financial judgment incurred. Our volunteer insurance program includes personal liability and excess automobile liability protection for just those situations.
  (Not available for work-release or alternative-sentencing volunteers)

The volunteer liability policy provides volunteers a $1,000,000 limit of liability; the excess automobile policies are written at limits of $500,000. Volunteers must rely on their own personal automobile policies to provide coverage for damage to their own vehicles.

These coverages are written on an excess basis; as is true with the accident coverage, if the volunteer has no other personal liability coverage, our personal liability insurance policy would be primary.

It is important to note that our excess automobile liability does require that volunteers carry at least the minimum automobile liability limits required of drivers in the state in which they are registered. Our policy would provide excess liability protection over those minimum state requirements - or the volunteer's own insurance policy, if those limits are greater.

• Volunteer/Employee Dishonesty -- Coverage protects the organization itself against losses caused by dishonest acts of a volunteer or employee; or by theft, destruction or disappearance of money or securities.

Q: If both Volunteer Liability and Excess Automobile Liability policies respond to claims of physical injury or damage to another's property, why are both coverages needed?
A: The volunteer liability policy specifically excludes claims involving the ownership, use, or operation of a motor vehicle. Consequently, an injury to another, or the damage to another's property, resulting from the use of a motor vehicle needs to be protected under a separate contract.

Q: Does the Volunteer Liability Insurance coverage protect a volunteer against an allegation of sexual misconduct or sexual abuse?
A: The volunteer would be entitled to the defense of an allegation of sexual abuse or sexual misconduct under the volunteer liability contract. The policy would not defend or indemnify the volunteer if they admitted wrongdoing, or if the allegations against them proved true.

Q: Does an organization need to apply for each coverage, or may they elect just to insure their volunteers under the accident insurance coverage?
A: The organization can insure their volunteers under all four policies, just one, or any combination of the four; however, they must insure all of their eligible volunteers under whichever coverage or coverages they select. As an example, if they have 50 volunteers, they cannot choose to insure just 20. They can choose to insure all 50 for just accident coverage, or do as most of our members do - insure all of their volunteers for each coverage.

Q: Volunteers come and go. How do I know how many to insure?
A: Insure the greatest number of volunteers you expect to have at any given time during the year. You do not need to let us know when volunteers come and go.

Q: Are all policies written on an annual basis?
A: Yes. You should know that in order to help us in renewing policies effectively, all coverages are written on an annual basis, July 1 - to - July 1 policy period. An organization that applies for coverage mid-term is issued a short-term policy on a proportional premium basis. That policy is then renewed on July 1 each year thereafter.

Q: When a volunteer is injured, or is sued, how can they make a claim?
A: All claims should be directed to the CIMA Companies, Inc., office in Alexandria, Virginia. We will notify the insurance carrier, and be available to make certain the claim is handled promptly and efficiently.
If you have a potential volunteer liability or excess automobile claim, we urge you to contact us by telephone at 1-800-468-4200.

Description of coverages, including cost information.

Choose an application for volunteer insurance.