Intuitive Insurance Articles

Association Liability

As a professional association, your key agenda is to represent the needs and concerns of your membership body, individual office bearers and employees, and the organisation in its entirety. Designed specifically for Associations and Not-For-Profit Organisations, Association Liability insurance combines Professional Indemnity and Directors and Officers Liability to ensure that you are protected against the inimitable risks facing community associations.

Association Liability provides protection to office bearers and directors, as well as the association itself, against litigation arising from wrongful acts in the management of the association, employment practices liability and fidelity. In addition, Association Liability also provides coverage to the association against claims for financial loss arising out of a breach of professional duty by the association.

Associations and Not-For-Profit Organisations are often exposed to litigation related to a range of issues, including breach of professional duty, Trade Practices Act matters, defamation, and breach of contract or consumer legislation. It is therefore important for Associations and Not-For-Profits to minimize their risk by having appropriate insurance.

Types of Associations are diverse and include, Chambers of Commerce, Charities and other Benevolent Societies, Educational Institutions, Licensed Clubs, Political Associations, Sporting Associations, Unions, and Professional Associations. Typically, Association Liability Insurance comprises of several features that may include:

  • Professional Indemnity Insurance/Association Liability
  • Directors’ and Officers’ Liability
  • Employment Practices Liability
  • Fidelity
Professional Indemnity Insurance

Professional Indemnity insurance protects you or your association against claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of your professional services. Professional Indemnity insurance protects policyholders against the legal costs of investigating and defending a claim made against you and/or your business, and any amount payable in relation to the claim.

Directors’ and Officers’ (D&O) Liability

Directors’ and Officers’ Liability (D&O) protects office bearers from claims that arise from decisions or actions taken within the scope of their regular duties. D&O liability insurance reimburses directors and officers of a company, or the association itself, for the costs associated with wrongful acts committed, or allegedly committed, in their capacity as corporate officers. D&O liability is, therefore, important cover designed to protect office bearers against losses arising from alleged wrongful acts committed while representing the association.

Employment Practices Liability

Employment Practices Liability is designed to help employers minimize the risk and potential cost of claims taken against them by employees. This type of liability insurance covers wrongful acts that arise from the employment process. The most frequent types of claims covered under such policies include wrongful termination, discrimination, sexual harassment and retaliation.

Fidelity

Fidelity insurance provides protection against losses incurred though employee dishonesty, such as the misappropriation of goods or money. In simple terms, fidelity insurance protects your association from losses sustained as a result of employee theft, fraud or forgery.

As with all Insurance policies the conditions and limitations will vary across different Association Liability products. It is therefore important to check your policy schedule to ensure that the insurance coverage is as you intended, and that there are no exclusions that may leave you exposed.

The best way to ensure that you find the right Association Liability policy for you and your organisation is to work with an experienced broker. If you would like more information, please drop us a comment, email, or call Intuitive on (02) 9493 6111. We’d love to hear from you!

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