Small Business Insurance
Small business Insurance : Volunteer Vetting
The use and role of volunteers in many small business is often a key factor in the running of that business.
It is perhaps inevitable that small business, whether anon- profit or not, will rely on volunteers perhaps more than a larger business or sme.
From a risk management point of view, it is crucial to see volunteers in the same light as you would any paid member of staff.
The fact that you are not paying them wages is irrelevant in that sense.
You will in effect be paying them in kind, either by work experience, references, expenses or in some other way. Risk management of volunteers is key.
Their duties and responsibilities reflect the same risk potential as do any employees that could affect any area of your business or subsequent insurance policy.
Small business insurance : Types of volunteer
Volunteers fall into two or three main categories, and whichever category they fall into, the vetting process and subsequent duty of care is pretty much the same.
Often small business’s will recruit volunteers to serve in some form of governance capacity.
This may be as a director of the business, as a trustee of the business or part of the business, or in some form of mentorship capacity.
Other volunteers are often referred to as interns, and they will likely be there for a specified period of time, with specified job descriptions or terms of service.
Other types of volunteer often work in a more informal capacity, often in a very loose sense of the word as a volunteer. This can often refer to friends and/or family who help out in different ways.
They may help for specific events , or offer specific time periods of help, ie a day a week or a day a month.
The important thing to remember from a risk management point of view is that they are people doing some form of work for you, in some capacity or other.
You have to be satisfied that they are capable and competent to do the work
You also have to be able to demonstrate if necessary that you have effectively performed some kind of due diligence as to their capability to perform that work.
Such due diligence can take different forms, depending on the nature and size of your business.
Small business insurance : Due Diligence Vetting of Volunteers.
As above the nature and type of due diligence will vary according to the size and nature of your business, but here are a few general guidelines.
If someone is volunteering in some type of governance role, be sure they fully comply with and understand all the legal requirements for their appointment.
This will cover their duties and responsibilities, as well as their eligibility for the role. With all volunteers it is a good idea to check for a criminal record or to check for criminal convictions.
This doesn’t mean you cannot or should not use the person, but it does give you the information you need to make an informed decision.
Bear in mind that your insurance company may well want to know if you are using or employing anyone with a criminal conviction, so check with them as well.
Have a well thought out policy for screening, using and retaining volunteers, so they are of maximum use to your company.
This is to their benefit as well as yours. A number of local or national volunteering organizations are likely to haver standard policies in these areas that you can adapt and use in your business.
If you business is a non profit, you are likely to use volunteers extensively, and it is well worth having at least one member of staff whose responsibility it is to oversee and manage the volunteers.
These are sensible guidelines for any business using volunteers, but also act as a risk management tool in making sure they underlie your insurance requirements.
The post small business insurance : volunteer vetting appeared first on Small Business Insurance.