Managing Volunteer and Special Event Risks

by James Shelby, CIC, CPCU Labarre/Oksnee Insurance hoains.com

Community Associations often depend on volunteers for a variety of tasks. Volunteers may serve on committees, such as Architectural Control or Decorating. Some communities have volunteer workdays to clean up and/ or do light maintenance to the common areas. While utilizing volunteers can benefit the community, what happens if a volunteer is injured? There are some risk management and insurance options that communities should consider regarding volunteers.

Before discussing how to manage the risks of volunteer injury, the community should determine what work is appropriate for volunteers. Plumbing, electrical, roof repair and other jobs typically performed by contractors are not tasks that should be done by volunteers. In addition to the risk of serious injury to the volunteer, there is a significant risk of damage to property or injury to third parties. Some of the insurance companies for community associations exclude “construction operations”, which may eliminate coverage for property damage or bodily injury resulting from “construction” done by community volunteers. Associations may require volunteers to sign waivers acknowledging the risks of injury and stating that they will hold the association harmless for injuries suffered while volunteering. While waivers may discourage someone from pursuing legal action, they may not hold up in the event of litigation. Associations should consult their legal counsel to determine if a waiver is advisable, and if so, counsel should draft the waiver wording.

If someone is injured while volunteering, the association’s liability insurance may respond. General liability policies normally include Medical Payments coverage, which will pay medical expenses if a volunteer or other party is injured in a common area, even if the association is not liable. The coverage limit is typically $5,000, although limits of $10,000 or higher may be available. There may also be coverage for injury to volunteers under the general liability policy if the association is legally liable for the injuries and if the volunteer makes a demand for damages, subject to policy terms and conditions. Communities may not want these claims to be paid under their general liability policy, as claim activity may negatively impact the cost and availability of coverage. There are other insurance options to fund the cost of volunteer injuries. There are a few insurance companies that provide workers’ compensation coverage for community associations with no payroll or limited payroll, and they will include medical expense coverage for board members, committee members, and other volunteers authorized by the board. Communities may also purchase volunteer accident policies, which will pay medical expenses and other costs, subject to policy limits and coverage terms.

As associations look for opportunities to engage residents and build a sense of community, they may host special events. The events may range from simple picnics or movie nights to fireworks displays and parties with bounce houses or mechanical amusement rides. While insurance and risk management are often an afterthought in the planning process, they should be an integral part of event planning.

When planning an event, it would be prudent to find out if the activity is excluded from coverage under the association’s insurance policies. Activities involving mechanical rides, bounce houses, live animals, and fireworks may not be covered. Even if there is not an exclusion, the insurance company may not want to cover certain activities. There are special event policies available to cover the liability exposures special events. When selecting a policy, it is important to determine that the insurer will cover the activities planned, and that there are not any limitations that might bar coverage. These insurance programs may also include accident coverage for participants and volunteers.

Whether the event is covered by the association’s liability policy (ies) or a special event policy, the insurance company will require the community to have a written contract with vendors stating that the vendor will indemnify the community for claims resulting from claims caused, in whole or in part, by the vendor, and that the vendor will add the community as additional insured on their liability policy(ies). The association’s attorney can advise on contract language, and the attorney, along with the association’s insurance provider, can recommend appropriate insurance coverages and policy limits to require.

Some associations may consider having participants sign liability waivers for certain activities. While waivers may discourage participants from suing for damages, as with waivers for volunteers, they may not hold up in court. The association should consult legal counsel regarding the appropriateness of waivers and waiver language.

Being proactive about risk management, whether dealing with volunteers or special events, enables community managers and boards to protect their owners and community assets.

James Shelby, CIC, CPCU | TX License 1068545 Regional Account Executive | Labarre/Oksnee Insurance

Direct Phone: (657) 207-4915 | Cell Phone: (214)250-8648 jamess@hoa-insurance.com | www.hoains.com

WE WANT YOU ON OUR TEAM!

There is a new advocacy committee in town and WE WANT YOU ON OUR TEAM! The mission of the Texas Legislative Action Committee (TLAC) is simple – to advance, defend, protect, and strengthen public policy for the community association-housing model.

In order to be successful, we need to hear from Community Board Members, Community Managers, and those who are directly affected by HOA and condominium association policy reform. We want to know what issues matter to you, what are changes you would like to see during the next legislative session, and how can TLAC help your association operate more effectively.

TLAC is CAI’s brand new advocacy organization and is the only group in Texas supported and endorsed by both CAI National and all CAI Chapters in Texas.

TLAC is a separate organization from the Texas Community Association Advocates (TCAA).

TLAC represents over 20,000 community associations and 5.6 million homeowners in Texas.

TLAC is governed by a broad group of delegates from all over Texas with varying levels of experience and expertise.

TLAC is focused on making education, transparency, and information available to managers, management companies and homeowners PRIOR to and DURING the legislative session.

TLAC is requesting all community associations contribute $1 per door to help raise funds to support ongoing legislative efforts. Any contribution helps, but our success in Austin relies on everyone chipping in!

If you’re interested in getting involved, our industry needs your help! TLAC is recruiting volunteers to serve on its committees!

GET INVOLVED AND SUBMIT YOUR CONTRIBUTION! CONTACT YOUR LOCAL COMMUNITY ASSOCIATIONS INSTITUTE CHAPTER EXECUTIVE DIRECTOR: