The Nonprofit:
A nonprofit operated a delivery service that collected donated food and supplies and provided seniors and people with disabilities with meals, groceries, and other essential household items.
To fulfill their mission, the nonprofit owned and operated eight cargo vans, which were driven by employees of the organization.
The Incident:
While driving on a roadway, one of the nonprofit’s drivers entered an intersection and failed to notice a motorcycle traveling through the intersection that had the right of way.
The motorcycle collided with the nonprofit’s vehicle, and the motorcyclist was injured in the crash. Emergency responders were called to the scene, and the injured rider received medical attention.
The driver notified the nonprofit’s main office and remained on the scene until responders arrived. Police administered a sobriety test, which indicated that the driver had not been driving under the influence of drugs or alcohol.
The Legal Action:
The motorcyclist sustained injuries in the crash, and their attorney filed a lawsuit against the nonprofit, seeking damages that included medical expenses and loss of income.
The Coverage:
The nonprofit reported the incident to its insurance broker, who initiated the claims process for the organization’s Commercial Auto liability coverage with Nonprofits Insurance Alliance (NIA).
The Result:
The defense team reviewed the incident, including the driver’s actions, roadway conditions, the crash reports and available records, the driver’s history, and the nonprofit’s training procedures and fleet management practices.
Based on the information available at the time, the right of way issue was an important factor in evaluating potential liability if the matter moved forward.
The parties participated in mediation and discussed potential resolution options. The matter concluded prior to trial.
Things the Nonprofit Did Well:
The nonprofit reported the incident promptly and followed established procedures for involving its insurance broker after the accident.
Timely reporting helped ensure the claim could be reviewed and handled without unnecessary delay.
How Can Your Nonprofit Protect Itself?
Nonprofits that rely on vehicles may consider how their drivers are supported, which can include setting policies and procedures around:
- Driver and safety training.
- How incidents are documented when accidents occur.
- How routes and driving conditions are assessed.
Clear procedures for reporting and documenting vehicle incidents can help organizations respond effectively and navigate the claims process when road related events arise.
NIA Resources:
NIA insured nonprofits receive a 40% discount on screening services through IntelliCorp, which may support organizations in evaluating candidates and aligning individuals with appropriate roles.
Eligible nonprofits insured by NIA also have free access to a broad selection of online driver safety courses, which can be used as part of internal driver training or education efforts.
NIA provides a free e-book, “Arrive Safe and Sound: Tips to Help Your Nonprofit’s Vehicle Safety Program,” which discusses vehicle-use policies and procedures that nonprofits may consider when managing organizational vehicles.
NIA insured nonprofits may also access SafetyFirst vehicle and driver monitoring, a tool intended to support the review of driver behavior and vehicle use.
From the Claims Files stories are for general information only. They are simplified examples and do not guarantee coverage, a defense, or any specific outcome. Some losses described in this series may not be covered.
Coverage depends on the specific facts and on the terms, conditions, and exclusions in your policy. Contact your insurance broker or agent for guidance, and follow your policy’s claims reporting procedures if an incident may involve a claim.
This story is not legal, medical, financial, or professional advice. In an emergency, contact local emergency services first. Any risk management practices mentioned are general suggestions and may not apply to every nonprofit. Follow all applicable laws, licensing rules, and reporting requirements.
