Overview
This article summarizes the practical lesson from the California case involving Diane Minish and a nonprofit employer, where a volunteer injured on the job sought more than workers' compensation benefits. It explains how nonprofits may treat volunteers for coverage purposes and what nonprofit boards, managers, and advisers should check to reduce risk.
The case shows that, under some state laws, a board's written declaration can make volunteers covered by an employer's workers' compensation policy without individual volunteer consent. That decision triggered a dispute about whether the volunteer could still pursue a negligence claim for additional damages.
Key takeaways
- Nonprofits may be able to enroll volunteers in workers' compensation through a formal board action.
- Volunteers who receive workers' compensation benefits may have limited ability to sue for negligence in many jurisdictions.
- Boards should confirm coverage choices in writing and keep clear records and waivers to reduce litigation risk.
How it works
State laws vary, but the basic mechanism is a written declaration by the nonprofit that treats volunteers as employees for workers' compensation purposes. That declaration typically must be made before the injury occurs to take effect.
Once a volunteer is treated as a covered employee, the workers' compensation system generally becomes the primary remedy for on-the-job injuries, which can preclude separate negligence lawsuits in many states.
For guidance on volunteer-specific policies and accident medical coverage options, see Diane Minish v. Hanuman Fellowship: Lessons for Nonprofits.
What it may cover (and what it may not)
Workers' compensation typically covers medical treatment, rehabilitation, and a portion of lost wages for work-related injuries. It usually provides faster benefits and a streamlined claim process compared with civil litigation.
What it may not cover are non-economic damages such as pain and suffering or punitive damages that a plaintiff might seek in a negligence lawsuit. In states where workers' compensation exclusivity applies, these additional claims are often barred once the worker accepts comp benefits.
Nonprofits should also review liability insurance provisions because some claims involving volunteers may fall outside workers' compensation or involve third-party liability. See additional context at Diane Minish v. Hanuman Fellowship: Lessons in Workers Compensation.
Common mistakes to avoid
Failing to document a board decision about volunteer coverage leaves organizations open to disputes about whether volunteers were intended to be covered.
Not providing clear waivers or orientation that explains coverage and claims procedures can cause confusion and later litigation.
Assuming that all volunteer injuries are automatically covered without confirming policy language and state rules is a frequent oversight.
Questions to ask an agent
Does your workers' compensation policy expressly allow the employer to extend coverage to volunteers, and what is required to trigger that coverage?
Will the nonprofit's liability insurance respond to claims that fall outside workers' compensation exclusivity, such as third-party suits or punitive claims?
What documentation should the board keep to show a proper declaration covering volunteers and the date it took effect?
Next steps
Nonprofit boards should review their state rules, confirm coverage options in writing, and adopt a consistent process for documenting volunteer status and insurance choices.
Make sure volunteers receive clear information about how to report injuries and how claims will be handled, and maintain signed waivers or acknowledgment forms where appropriate.
For practical examples of insurance programs that address volunteers and hard-to-write workers' comp situations, consider resources like Hard to Write Workers Compensation Insurance and the other case-focused materials above.
If you need specific policy guidance, review your options with an insurance professional and talk to an agent about the best placement for volunteer exposures.
Frequently Asked Questions
Can a nonprofit unilaterally make volunteers employees for workers' compensation?
In some states, a board can declare volunteers covered under the organization's workers' compensation policy, provided the declaration complies with state law and is made before an injury occurs.
If a volunteer gets workers' compensation benefits, can they still sue for additional damages?
Often workers' compensation is the exclusive remedy, which can bar most negligence claims, but outcomes depend on state law and case-specific facts.
What documentation should a nonprofit keep about volunteer coverage?
Keep written board resolutions or policy statements, signed volunteer acknowledgments, training records, and copies of relevant insurance policy language.
Should nonprofits buy separate volunteer accident coverage?
Additional volunteer accident or medical insurance can fill gaps that workers' compensation or general liability may not cover and is worth discussing with your broker.