Did you know that there are over 57,000 charities and not-for-profits in Australia who are registered with the Australian Charities and not-for-profits Commission? Yet, according to statistics released by APRA, very few of these companies seem to buy Association Liability insurance. The management exposures of running an association, not-for-profit or charity are comparable to those of a private company, yet Association Liability insurance is not widely purchased. But there is no reason why these uninsured exposures should remain that way.
Association Liability insurance covers certain risks arising from the actions and decisions of directors, officers and managers, which arise from the running of an association, charity or not-for-profit organisation. These actions and decisions could include improper conduct such as sexual harassment claims or legal claims, such as unfair dismissal or defamation. There are few industries which could afford to ignore the legal and regulatory risks of their operations and the not-for-profit sector is not immune. Fines from various government or industry regulatory bodies can reach hundreds of thousands, or even millions of dollars for very serious breaches. In addition, the cost of defending litigation can ripple otherwise healthy and solvent organisations.
ProRisk’s Association Liability policy is specifically designed to cover the management exposures of a small to medium-sized association, not-for-profit or charity. When you think about the risks of doing business in Australia or New Zealand, Association Liability insurance really should be a must buy as part of any comprehensive risk management strategy.
Effective risk management isn’t just about purchasing Association Liability insurance. The Australian Institute of Company Directors has produced the Good Governance Principles and Guidance for Not-for-Profit organisations, which is available for download from their website and at the bottom of this page. This publication is a must read for all managers and committee members of not-for-profit organisations or associations wanting to improve their governance.
With limits up to $10 million dollars available and premiums starting from as low as $500, ProRisk’s Association Liability policy is available for organisations structured as an association, not-for-profit or charity with revenue up to $25m and up to 500 employees and volunteers.
Get a quote on ProBind today.
* This product is made up of two documents the Policy Wording and the GTC’s (General Terms and Conditions). They must be read in conjunction with each other and together form the contract of insurance along with the Policy Schedule, which is issued at the policy inception.