Download Word Format - Oregon Master Gardener Association

Liability Insurance
OMGA chapters are often required to provide proof of liability insurance coverage when renting
facilities for their events. Even without the requirement for such coverage, it makes good sense
to have some liability protection in today’s litigious society. There are many situations in which
your chapter could possibly be targeted in a lawsuit. The following situations are offered as
examples of potential lawsuit situations.
 An auto accident involving a member while on MGA business
 A slanderous statement by a member about anyone in an MGA talk
 An injury in a fall by attendee at an MGA event
Some of the important liability insurance considerations are discussed in the following
paragraphs.
Degree of exposure: Lawsuits against your chapter can usually only reach your chapters assets.
Directors and officers are generally provided special protection in a non-profit association, but
they may be liable if they violate normal standards of conduct. (Examples would include
neglecting to monitor financial affairs of the chapter, performing illegal acts such as self-dealing,
or neglecting other responsibilities.)
Even though directors, officers and members of non-profits are provided with special protection
under the law, they can still be sued. Costs of defense to the chapter and/or the individual can be
significant even when protected under the law.
Existing Coverage: OMGA members are automatically provided some liability protection by
OSU. However, this insurance covers volunteers only when serving under the supervision and
control of OSU employees. It provides unlimited tort liability coverage, excluding hazardous
substance cleanup and contract disputes. It provides coverage against claims while in a state
vehicle. It also provides coverage against claims when authorized to use a private vehicle on
state business, provided that minimum liability insurance is maintained on the private vehicle. In
this case, the state coverage is secondary to the individual’s insurance coverage.
Needed Coverage: The OSU insurance does not cover chapter members participating in chapter
business apart from OSU’s Master Gardener Program. Unfortunately, interpretation of the
coverage criteria can be difficult, depending upon the situation. That is, it is not always clear as
to whether a member is on Master Gardener Program business or separate Chapter business.
It is suggested that a chapter obtain separate liability coverage if it is engaged in activities apart
from the OSU Volunteer Program, such as special events designed principally to raise funds.
Such coverage will provide a degree of protection to the chapter, its officers and its members for
relatively modest costs.
Both single event and continuous liability coverage are available from insurance firms.
Surprisingly, experience seems to indicate that continuous coverage is far more preferable
because annual cost is less than cost for a single event. Tabulated below are examples of
continuous coverage policies obtained by two chapters in Year 2012.





Annual premium:
Aggregate limit:
Products limit:
Personal and advertising limit:
Medical expense:
Example 1
$360
$2,000,000
$2,000,000
$1,000,000
$10.000
Example 2
$210
$2,000,000
$2,000,000
$5,000
In these examples the policies included bodily injury and property damage, limited slander and
libel protection, and invasion of privacy protection. The policies provided protection of the
chapters and their members, but only when involved strictly on Chapter business.
Personal Injury Insurance
The State of Oregon offers personal injury coverage to volunteers in the Master Gardener
Program through the so-called Volunteer Injury Coverage program (VIC). This program
provides payments to Master Gardener Program volunteers for injuries that they might incur
while performing tasks under the direction of OSU employees.
Key features of this program include the following:
 It provides limited payment for injury to volunteers.
 Volunteers must elect coverage. A Waiver and Release of Rights form must be signed. The
State of Oregon is released from any liability in excess of coverage if coverage is elected.
 Extent of coverage
 Maximum total payment of expenses for an accident is $25,000
 Maximum medical expense payment is $10,000
 Accidental death, dismemberment and disability are covered within the foregoing limit.
 The state coverage is secondary to any other insurance coverage.
Your Extension Agent should be able to provide further details on the program and enrollment
forms.