Liability and the Volunteer Protection Act
When volunteers bear the burden of liability, the public is less likely to participate in social service programs. To promote volunteerism, the Volunteer Protection Act (VPA) was signed into law in 1997. This act pre-empts existing, looser state laws protecting nonprofit volunteers, encouraging the public to participate in social service.
When Does It Apply?
The organization overseeing the volunteer is defined as “any not-for-profit organization which is organized and conducted for public benefit and operated primarily for charitable, civic, educational, religious, welfare, or health purposes,” which does not practice any action which constitutes a hate crime. The VPA protects volunteers of these nonprofits against civil liability if the volunteer does the following:
- Was acting within the guidelines of their job description
- Had the proper licenses, certifications or was authorized to act, and those acts were within his or her job description
- Did not cause harm that was “caused by willful or criminal misconduct, gross negligence, reckless misconduct or a conscious, flagrant indifference to the rights or safety of the individual harmed”
- Did not inflict harm while using a motor vehicle, aircraft or other vehicle
Since states’ laws vary, the VPA provides consistent protection for all volunteers. More specifically, many states only provide protection to the nonprofit organization’s director or board members, while others protect everyone associated with the organization.
The VPA does not, however, protect a volunteer from litigation brought by the organization onto the volunteer for violating one of previously mentioned criteria.
Most importantly to the organization, the VPA does not protect the nonprofit organization that the volunteer represents from litigation, it only protects the volunteer. In other words, the organization may be liable for the negligent actions of the volunteer, even when the volunteer is immune from litigation under the VPA. Therefore, the burden of responsibility is on the organization to assure that its volunteers are acting in a lawful manner while carrying out the duties assigned to them by the managing organization.
What are the Consequences?
Though the Act does encourage the public to volunteer without fear of litigation and assures that volunteer protection laws do not vary significantly from state to state, it also poses threats to you, the organization. With this added legal security, volunteers may take more risks while doing assigned jobs or take on responsibilities without proper training. Furthermore, they may not exercise the type of caution needed or become careless in their dealings with the people you work with.
The act may also deter organizations from enacting risk management programs to ensure that volunteers are properly trained, knowledgeable and prepared.
How Can I Protect My Organization?
To prevent excessive liability on your organization, you should do the following:
- Establish a risk management program run by a designated committee to address factors that could negatively affect your organization. The committee should identify risks that have the potential to be costly.
- Have risk financing in place to pay for damages, legal expenses, injuries or other costs associated with litigation.
- Obtain general liability insurance, which protects against bodily injury and property damage claims that are brought against the agency regarding acts committed by the volunteer.
General liability insurance will protect an organization’s assets in the event of a lawsuit. In some cases, the VPA may also reduce the organization’s risk and, therefore, may reduce the insurance premium. Contact Alera Group to learn more about our cost-effective liability insurance solutions to protect against litigation as a result of volunteer actions.
This Risk Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2023 Zywave, Inc. All rights reserved.