Every association faces exposure, whether or not there are employees.
What if an employee of an uninsured vendor is injured at the association’s property, and the employer has not provided proper coverage? The association may be required by the local labor or industrial authorities to step in as the ‘employer’ as it relates to benefits owed to the injured employee.
What if a volunteer or board member working on behalf of the association is injured during the course of their duties? The association should (and ultimately may be required to) treat the injury as “work-related” which requires benefits be provided.
Here’s what to consider with coverage:
While a general liability (GL) policy will provide coverage for bodily injury to a third party, it EXCLUDES coverage to those deemed an employee of the association should they experience bodily injury. Subsequently, a serious injury to a board member or volunteer could be viewed as an injury to an employee of the association by the GL carrier and not be afforded coverage by the policy.
We have the solution. CAIS offers an "If-Any" Workers’ Compensation Policy that includes a voluntary compensation endorsement to solve these issues. The "If-Any" Program is sometimes referred to as a ghost policy or a volunteer workers' comp policy. The premium for this coverage is between $280-$1,100 annually, depending on your state. The following are examples of claims that have been incurred by board members/volunteers!