Association Liability

What is it and why do you need it?

The Scenario – yes it was an honour when members of your organisation asked if you could sit on their committee.  You knew it carried great responsibility. They are depending on you to make appropriate decisions for the organisation. 

They chose you because they felt you had the skills to assist in supervising the organisation to continue forward, to grow and prosper and deliver the services that the membership expect.

 But what if you made a mistake? What if one of the other members of the committee made a mistake and you were included in with them? Would you be personally liable? Would the organisation protect you?

The answer is that the law provides that under given circumstances, directors, officers, employees and/or volunteers can be held personally accountable for their actions. These individuals can be held accountable for failing to act in accordance with the conduct in line with the duties owed to the members who put you there.
 

Therefore an Association needs Financial Protection for its directors, officers, employees, and volunteers and there are two methods by which an organisation can provide this

  • Indemnification.
  • Insurance

There is of course a third method – do not be on a committee at all!

Indemnification or Insurance – the issues

Statutes permit non-profit corporations to indemnify their directors and officers against loss incurred as a result of certain types of claims. Such indemnification does not provide protection in all instances.

Plus the organisation may not have sufficient financial resources with which to pay the losses and defence expenses.  Therefore most non-profit organisations purchase Association Liability insurance.

While there is a financial outlay buying insurance, it is a much cheaper solution compared to the consequences. So we strongly recommend considering the protection of an Association Liability policy.

Who can help?

An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you with their skill, market knowledge and experience. Call a good one.

Call CPR –Experts who will save you 

What is an incorporated Association?

Association Liability - What is it?

Association Liability - Claims Examples

Association Liability Proposal Forms

Association Liability Policy Wordings

Latest News

CPR joins Ausure

We would like to announce to all our Clients, Prospective Clients, Suppliers and Insurers, that Cooper Professional Risks Pty Ltd trading as CPR Insurance Services, will be leaving National Adviser Services Pty Ltd (NAS) and joining Ausure Pty Ltd as a Corporate Authorised Representative from 5 March 2018.

Fundamentally, there is no difference to you, except our Invoices will look a little different, and the Banking details will be in a different name and account number. Everything else at CPR stays the same.

There are a number of reasons we have made this decision, but the primary reason is for what we believe is best for our clients.

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Special offer to CPR Insurance clients

Employsure are providing a FREE Business Health Check to all our clients and gives you the opportunity to receive an analysis of the health and safety requirements in your workplace. Also. Employsure  will review your employment agreements as well as your wage rates helping you to avoid workplace claims.

Ordinarily this would cost you at least $1,250 but because you are a CPR Insurance client, it is free!

It involves the following review for you.

SAFECHECK

A specialist Work Health and Safety Consultant will visit your workplace and carry out:

A review of your business’ current work health and safety policies, procedures and systems to identify areas of concern or non-compliance

Following the review, you will receive a report summarising the findings and the health and safety

Status of your workplace

WAGE CHECK

A Wages Adviser will review your rates of pay and produce a Wage Check report.

The review will be conducted against the industrial instrument applicable

A report will be supplied advising if the wages are compliant and what steps to take to achieve compliance

CONTRACT REVIEW

A Document Consultant will review an employment agreement and provide recommendations.

The review will highlight compliance issues with the Fair Work Act 2009 as well as best practice

The report will make recommendations to achieve compliance and provide protection to your business.

This will remove any areas of potential dispute and risk

So what do you have to lose? Contact us on 07 3123 1137 and arrange 

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