Three Types of Insurance Plans You Need to Cover Your Volunteers

Do you operate a nonprofit or charity that makes use of volunteers? If so, you should know that volunteers are not typically covered under the insurance policies which protect your salaried employees. Without an insurance plan for your volunteers, your organization may be responsible for the costs associated with any illnesses or injuries that occur while they are volunteering. You will also be responsible for covering any public liability claims they incur. Below are the three types of policies you need.

  1. Volunteer Injury or Illness

Coverages for volunteers should pay for the medical expenses associated with illnesses or injuries sustained during an authorized volunteer activity. Moreover, if your organization’s workers’ compensation insurance does not extend to volunteers, it would be wise to make sure that your volunteer policy offers this protection.

  1. Public Liability

In addition to protecting your volunteers, your organization needs a public liability policy to cover any injury or property damage claims caused by your volunteers.

  1. Directors and Officers

Finally, if the board of directors of your non-profit or charity consists of volunteers, they need the specific coverage offered by a D&O policy. This will protect them from any claims of wrongful acts or mismanagement.

Your volunteers work hard for you. They can save your organization money, lighten the workload of your paid staff, and act as a valuable conduit to the community which your charity or non-profit serves. You owe it to them to make sure that they and your organization are protected by policies designed specifically for the risks they face.

How Modification Rate Affects Workers Comp Costs

When it comes to calculating premiums for workers’ compensation insurance, the criteria involved are not always straightforward. One of the factors that are part of the equation is called an Experience Modification Rating. It is a multiplier that typically takes your claims history over the past three years into account. The mod rate can have a significant effect on how much more (or less) a company pays for workers’ comp coverage.

The rate starts at a baseline 1.0 and is adjusted from there. An above-average amount of claims over the time period can shift this value upwards. Typically, a business is compared to other companies with similar classifications to determine if the amount of cases is excessive or not.

Steps To Reduce Mod Rate

Since more claims result in a higher mod rate, then the opposite is also true. Fewer claims over time can reduce the rate – resulting in lower insurance premiums. There are several corrective and preventive ways to accomplish this:

  • Develop and promote safety and training programs.
  • Investigate accidents and learn how to prevent them from happening again.
  • Search for ways to improve ergonomics and fatigue-related injuries.

Workers’ compensation insurance can be a large expense for employers. Understanding the modification rate is essential for understanding how to reduce those costs.