Volunteer organizations play a crucial role in Alberta, offering services and support to communities across the province. Despite their good intentions, volunteer organizations grapple with many of the same risks that for-profit businesses face, such as bodily injury to visitors, property damage, and even allegations of mismanagement or abuse. Having the following insurance coverages can protect your organization and volunteers from significant financial and legal risks.
Commercial general liability insurance in Alberta
Commercial general liability (CGL) insurance is a foundational coverage for volunteer organizations in Alberta. It protects against claims of bodily injury and property damage due to events, activities or the daily operations of your organization.
For example, a slip-and-fall incident at a community fundraiser could lead to costly legal action. In this scenario, CGL insurance could help cover your legal defence costs, a settlement for the injured party’s medical expenses and lost wages, and the costs associated with mitigating reputational damage due to the incident.
CGL insurance automatically covers your directors and employees when they’re engaged in official work duties, but that protection does not typically extend to volunteers. You may need a coverage extension for these workers.
Abuse and molestation insurance in Alberta
If your organization works with vulnerable populations like children, the elderly, or people with disabilities, abuse and molestation insurance is critical. It may be available as an endorsement to your CGL policy, or a stand-alone policy.
This insurance helps pay if there are allegations of abuse involving your employees, volunteers or affiliated parties. The alleged abuse can be physical, sexual, verbal or emotional.
Abuse claims can result in devastating financial and reputational damage, even if the accusations are unfounded. This coverage can provide financial assistance for legal defence costs, settlements and damages resulting from a claim. This can enable you to continue your volunteer business while addressing the situation.
Directors and officers liability insurance in Alberta
Directors and officers (D&O) insurance protects the personal assets of your volunteer organization’s leadership from liability claims arising from decisions or omissions made in their official capacities. Claims can arise from allegations of mismanagement, breach of fiduciary duty, or failure to comply with regulatory requirements. D&O insurance can cover the cost of legal defence, settlements and damages. With D&O coverage, your directors and officers (often volunteers themselves) won’t be held personally financially responsible for issues that arise under their leadership.
Commercial property insurance in Alberta
Commercial property insurance helps safeguard your volunteer organization against various losses. For example, if you own, rent or lease a building for your daily operations, this insurance will cover damage caused by fires, water, theft or vandalism at that property. It can also protect the contents of your building, such as your organization’s furniture, computer equipment and other assets.
Volunteer accident insurance in Alberta
Volunteer accident insurance covers medical expenses and provides accidental death or disability benefits for volunteers who are injured or killed while performing their duties. Having this coverage demonstrates your commitment to volunteer safety. It also offers peace of mind to volunteers, who often fall outside provincial workers’ compensation programs.
Event liability insurance in Alberta
If your volunteer organization hosts or organizes events like fundraisers, workshops or community gatherings, event liability insurance is essential. It can help cover expenses related to claims of bodily injury and property damage that may unfold during your events. Depending on the types of events you host, you may also want to secure event cancellation coverage, accident insurance, liquor liability or other types of insurance. You can add most of these as endorsements to your existing liability policies or buy them as stand-alone policies.
The insurance products listed above are just a handful of coverages you may need if you run a volunteer organization. Every group’s needs vary based on size, location and activities. Consulting with a broker experienced in insurance for nonprofits is crucial to crafting a tailored risk management and insurance plan.
Laws and regulations for volunteer organizations can vary across Canada. In Alberta, for example, the Freedom to Care Act offers liability protection for volunteers acting in good faith within their defined roles. However, this law does not eliminate the need for organizational insurance, as you will remain accountable for negligence and risks outside of the act’s scope . In other provinces, like Ontario and British Columbia, the laws make D&O and CGL insurance essential for compliance and protection.
A comprehensive insurance plan that complies with local laws is critical to the success of your volunteer organization. With the right protection, you and your volunteers can focus on what you do best: giving back to society.
Have questions? Contact us at info@bulgerinsurance.com or visit us in Edmonton.
