Volunteers are the heart of many Australian charities. They donate their time, skills, and passion to help causes that make a difference in communities across the country. From organising fundraising events to delivering essential services, volunteers play a crucial role in keeping non-profits running.
But what happens when something goes wrong? What if a volunteer is injured while working or causes an accident that leads to legal action? Many charity leaders assume that because volunteers aren’t employees, they don’t need insurance coverage. However, failing to have the right protections in place can result in financial and legal consequences that jeopardise the organisation and its mission.
In this article, we’ll explore the types of insurance available for charity volunteers, the legal responsibilities of nonprofits, and how organisations can choose the right coverage to protect both their volunteers and themselves.
Why Volunteers Are the Backbone of Australian Non-Profits
Without volunteers, many Australian charities simply wouldn’t exist. Whether they’re providing disaster relief, mentoring young people, or running community programs, volunteers contribute millions of hours each year to causes that benefit society. However, because volunteers aren’t considered employees, they aren’t automatically covered by traditional workers’ compensation schemes. This creates a legal and financial risk that charities must manage. If a volunteer is injured on duty or causes damage to property or another person, your charity could face compensation claims, medical costs, or legal disputes.
What Happens If a Volunteer Is Injured During Charity Work?
Accidents can happen anywhere, even in the safest of environments. A volunteer might trip and fall at a fundraising event, suffer a back injury while moving equipment, or be involved in a car accident while delivering meals. When these incidents occur, who is responsible for covering medical expenses, lost wages, or legal costs?
Without proper insurance, the burden often falls on the charity itself, putting its financial stability at risk. In some cases, volunteers may even take legal action against the organisation to recover damages. That’s why having the right insurance policies in place is critical for protecting both the charity and its volunteers.
Different types of insurance policies can provide coverage for charity volunteers. Here’s what you need to know about the most relevant options:
Workers’ Compensation Insurance – Does It Apply to Volunteers?
In Australia, workers’ compensation laws vary by state and territory, but they generally apply only to paid employees. Volunteers are not considered employees under most workers’ compensation schemes, which means charities need alternative coverage options to protect them in case of injury.
Volunteer Personal Accident Insurance – Covering Injuries and Medical Expenses
Volunteer personal accident insurance is designed to provide financial protection if a volunteer is injured while carrying out charity work. This type of policy typically covers:
- Medical expenses related to injuries sustained while volunteering
- Loss of income if the volunteer is unable to work due to the injury
- Lump sum payments for permanent disabilities or accidental death
Having this coverage ensures that volunteers don’t have to bear the financial burden of injuries sustained while helping a cause they care about.
Public Liability Insurance – When a Volunteer Causes Injury or Damage
Public liability insurance is essential for any charity that engages with the public. If a volunteer accidentally causes injury to someone else or damages property while performing their duties, this type of insurance can cover:
- Compensation claims from third parties
- Legal costs associated with defending a claim
- Settlement costs if the charity is found liable
Without public liability insurance, a single accident could lead to lawsuits that drain a charity’s funds and damage its reputation.
Legal Obligations: Are Charities Required to Insure Volunteers?
While there is no universal law requiring charities to insure their volunteers, organisations still have a duty of care to provide a safe working environment. Failure to meet this duty can lead to serious consequences, including financial liability and reputational damage.
The Australian Charities and Not-for-profits Commission (ACNC) advises charities to take appropriate steps to protect volunteers, including risk management and insurance. While specific requirements vary by state, some jurisdictions mandate that certain volunteer roles—such as those involving high-risk activities—be covered by insurance.
Even when not legally required, having proper coverage is considered best practice. It demonstrates that a charity values its volunteers and takes their welfare seriously.
The Importance of Duty of Care for Volunteers
Duty of care means that charities must take reasonable steps to ensure the safety of their volunteers. This includes:
- Providing proper training and supervision
- Conducting risk assessments for volunteer roles
- Ensuring safe working conditions
Insurance is a crucial part of fulfilling this duty, as it provides financial protection if something goes wrong despite a charity’s best efforts.
Case Study: A Volunteer Injury Claim
To illustrate the importance of insurance, let’s look at a real-world example of a volunteer injury claim.
Sarah, a volunteer at a Melbourne-based food relief charity, slipped on a wet floor while carrying a box of supplies. She suffered a fractured wrist, which required surgery and months of rehabilitation.
Since the charity didn’t have volunteer personal accident insurance, Sarah had to cover her medical costs herself. Facing financial hardship, she sought legal advice and ultimately filed a compensation claim against the charity.
Another charity in a similar situation had volunteer personal accident insurance in place. When a volunteer sustained a similar injury, the insurance policy covered the medical expenses and lost income, preventing the charity from facing financial strain or legal action.
These examples highlight how having the right insurance can make a significant difference in protecting both volunteers and the organisation.
How to Choose the Right Volunteer Insurance Policy
Selecting the right insurance policy for volunteers requires careful consideration. Here’s what charities should look for:
- Medical expenses for injuries sustained while volunteering
- Compensation for lost income due to injury
- Coverage for permanent disability or accidental death
- Public liability protection for third-party claims
It’s also important to review any exclusions or limitations to ensure the policy meets the organisation’s specific needs.
Comprehensive Volunteer Insurance for Australian Charities
Protecting volunteers is essential for any nonprofit organisation. ACS Financial offers tailored insurance solutions designed specifically for charities, ensuring they have the right coverage for their unique risks.
With specialised policies, expert guidance, and a deep understanding of the not-for-profit sector, ACS Financial helps organisations safeguard their volunteers while managing costs effectively. Before selecting a policy, charities should assess their coverage needs and seek professional advice to ensure they have the best protection in place.
Protecting Your Charity and Volunteers
Insurance for charity volunteers isn’t just about compliance—it’s about ensuring that those who give their time and effort to help others are also protected. Accidents can happen in any environment, and without proper coverage, charities risk financial loss and legal complications.
By investing in the right insurance, nonprofits can provide peace of mind for their volunteers and continue their vital work without unnecessary risks.
Don’t leave your charity or volunteers unprotected. Get a quote today, make a claim, or speak to our team at ACS Financial for expert advice on volunteer insurance. Call 1800 531 465 to ensure your organisation and volunteers are protected.