The Holiday Food Donation Dilemma for Insurance

The need for clothing, household items, and food continues in our community, and there are many great organizations that help fill that role.  The people providing this service are caring, dedicated volunteers. However, risk management may be the last thing the organization is thinking about. It is important to understand what your current insurance policy includes, and more importantly, may exclude.

Your Holiday Checklist

When reviewing your policies, include the following questions in your checklist:

• Does our policy include coverage for acts committed by volunteers?
• Do we have auto coverage? Do we require our volunteers to provide evidence they have their own auto coverage when using their own vehicles for deliveries?
• Do we need to increase our stock limits on a temporary basis?
• Do we have appropriate liability coverage in the event of a food recall or illness outbreak?
• Do we need any type of temporary coverage for offsite storage or cold storage?

These are things that should be discussed annually as part of your insurance review. Choosing to self-insure these exposures is a solid risk management strategy, as long as everyone understands that the insurance is non-existent or inadequate to pay in the event of a loss. Spending time to review the policy and exposures annually will help to reduce unexpected surprises during the busy holiday season. Let the Not-For-Profit Practice Group help you sort out these issues.

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