Nonprofit company cars and driving – are you covered?
Do you have company cars or staff or volunteers driving during their work for the nonprofit?
Does the nonprofit’s insurance cover the car or the activity?
If the nonprofit owns a vehicle
Some nonprofits need to own a vehicle in order to carry out their mission – think the van that transports all the kids to a camp, the truck that delivers food to the elderly, and so on. If that’s the case, the nonprofit should have it insured – and NOT just added on to someone’s personal car insurance policy!
Company-owned cars need to be covered under a commercial auto policy. It is pretty similar to a personal car insurance policy, but Tom explained a few of the differences. For one, you’ll want to chat with an agent about who drives it, why they’re driving it, where they’re going, etc. All those details will affect the level of coverage needed in the case of an accident.
For hired or not-owned cars, the game is a little different, but there is still liability to deal with. If the nonprofit rents a car for staff or volunteers to use, chat with an agent – you’ll still need insurance, but it will be a different kind of package.
For personal vehicles driven for nonprofit work, you still want this liability covered. Why, you ask? Here’s an example:
Say a staff member at a dog rescue drives over to the pet store to pick up some backup dog food. She hops in her own car, and she gets in a car accident on her way back (she’s not hurt in this hypothetical, in case you were worried 😊).
Yes, her car should be covered under her own personal car insurance policy. BUT, say she mentions in the report that she was working for Sue’s Puppy Rescue at the time and was getting dog food. The other person’s insurance company will almost certainly name her personal policy AND the nonprofit since she was driving on their behalf.
Not great, especially if the nonprofit ends up having to pay for anything out of pocket.
So, now what?
If any of these situations could possibly come up at your nonprofit, it’s easiest to get the liability covered rather than pay WAY more in event of something happening. Chat with a good insurance agent (Tom is great, if you’re looking for someone), and explain the nonprofit’s situation to get the best coverage.