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Published on Aug 7
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A Guide for Nonprofit Organizations
As so many other Ohio nonprofit organizations, yours probably relies on the daily time and talent contributions of volunteers to achieve your mission. Generally, volunteers are not considered employees. Thus, they are not entitled to coverage under the Ohio Bureau of Workers’ Compensation (BWC) system. Since volunteers at your nonprofit organization are not covered by workers’ compensation, your organization is left exposed to the risk of lawsuits from injured volunteers. There are important steps that you can take to minimize your risk and protect both the interests and health of your organization and your volunteers.
What is a volunteer
Volunteers are individuals or groups who offer to do work for a nonprofit or public organization for no compensation. Generally, individuals who volunteer select organizations that have some personal meaning or connection to their lives or their interests and receive some fulfillment from giving back to their community. Volunteers help with everything from fundraising, administrative tasks and operations, serve on boards, and help spread the work about the mission of the organization for whom they volunteer. Volunteers are crucial to the success of many organizations and truly are the backbone of most nonprofits.
Independent insurance options
Just because volunteers for nonprofit organizations are not covered in Ohio under workers’ compensation, doesn’t mean that there is not a way for your organization to protect yourself against lawsuits while providing some coverage for injuries sustained by volunteers. Since every organization is required to carry a general liability insurance (GLI) policy, one of the easiest options for volunteer injury coverage is to add an additional insured endorsement attached to your existing GLI policy.
Among other things, GLI coverage protects your nonprofit when a third-party, like a volunteer or client, is injured on the premises. GLI coverage can cover medical expenses, legal fees, witness costs, and more in the event of an injury or lawsuit resulting from an injury. For volunteers injured while performing services for your organization, your GLI coverage can pay for medical costs related to the injury. If you are sued by an injured volunteer, your GLI policy can also pay for legal fees and court-awarded compensation.
In the absence of workers’ compensation coverage for volunteers with nonprofit organizations, the only route left to keep your organization covered in private or independent insurance options. Keeping your organization protected while meeting the needs of your volunteers is critical to the success of your nonprofit.
Public employers and volunteers
The one exception to this rule is volunteer emergency personnel utilized by cities, townships, and villages. These volunteer emergency personnel are covered under workers’ compensation.
Public employers who engage the services of volunteer emergency service personnel are required to carry workers’ compensation coverage for these individuals. Volunteer emergency personnel includes volunteer firefighters, police officers, and emergency medical technicians. Public employers are required to report at least $300 per enrolled person per year with a minimum reportable payroll of $4,500.
Additionally, public employers may also elect to cover volunteers for non-emergency duties and those performing community service in lieu of a fine or jail sentence. The public employer must report these volunteers to the BWC by completing form U-69 Contract for Coverage of State Agency or Political Subdivision. Information necessary for the document includes a roster of all volunteers to be covered, addresses, social security numbers, and a copy of a court order signed by a judge, when applicable.
Protect your nonprofit
Understanding the rules applied by the Ohio Bureau of Workers’ Compensation can often be difficult. Don’t put the health and safety of your organization and your volunteers at risk by not having adequate protection for both. If you have questions about how workers’ compensation rules apply to your nonprofit, Sheakley is here to help.
Contact a Sheakley Workers’ Compensation expert today to learn more about how workers’ compensation applies to your organization. Working with more than 16,000 employers across Ohio, Sheakley’s Workers’ Compensation team has the experience to help you make the best decisions for your organization.
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