Employee Volunteer Work Causes Coverage Question

A question from a bank client about employees volunteering.

I hope you are well.  I have an interesting question for you. If an employee is off under our volunteer paid time off policy and happens to get injured, what is the Bank’s liability (if any) and what insurance would potentially pay out? This did not happen, we are just curious as to how that works. Thanks for whatever you can offer!

 

My Reply:

I think an injury while doing volunteer work in the name of the bank would be a workers’ compensation claim for the bank.
Your workers’ compensation insurer might try to fight it. I think they would lose.
If the above did happen, your workers’ compensation policy will respond – just as if the employee fell down the stairs at a branch.
If the workers’ compensation carrier was successful fighting the workers’ compensation claim it would mean that the bank had no liability – no reason to pay. Should the EE fight beyond that the employers liability part of the workers’ compensation policy would kick in (such a claim would be quite unlikely).
If the EE caused an auto accident, the bank’s non-owned auto coverage could come in. A big claim might trigger the umbrella.
In the above I find no area where the standard bank insurance program does not address the exposures – assuming it is properly designed.
Also, there is nothing in this exposure that is unusual. Your insurers will not be surprised your employees do volunteer work under the bank’s banner.
Does that help?

Scott