The law automatically provides a bar to liability in suits brought against association volunteers in circumstances covered by the law. It may, however, assist in deterring or discouraging potential claimants from bringing such suits in the first place. The law preempts all inconsistent state laws, including the greatly varying volunteer protection laws that now exist in all 50 states. Each individual state is given the prerogative to increase protection from liability for volunteers beyond that provided in the federal law. There is also a narrow exemption that permits an individual state to avoid preemption with respect to suits brought in state court and involving only citizens of the state if the state does so via a stand-along law.
Insurance is still very important and very useful.
Many liability risks for associations and their volunteers are not eliminated by the new law. All of these are ordinarily covered by typical association liability insurance policies. Effective risk management for associations involves several layers of protection, just as with automobile safety or fire safety. Training and education of employees volunteers, indemnification of individuals by the association, and association liability insurance can all be excellent, if in some respects overlapping precautions. The new federal Volunteer Protection Act of 1997 increases and enhances association risk management, but it does not replace other risk management techniques, such as insurance.