Even with the best policies, procedures and people, things can and sometimes do go wrong. Having insurance is one method of mitigating the risks identified in your Risk Management strategy; it can cover your organisation for the financial impact of third party claims, replacement or repair costs, and even legal fees.
There is no “one size fits all” when it comes to insurance. The types of insurance, and the level of cover required, is specific to each organisation, its location, activities and risk profile.
What is an insurance broker?
Insurance brokers are professional advisers who will help you identify the risks that need insuring; and source and arrange insurance policies on your behalf.
- see the Insurance Brokers page on the Insurance Council of Australia website for more information.
Tips for choosing insurance cover
- Consider getting quotes from several insurance brokers, so you can compare and choose the best option for your organisation.
- Carefully check the exclusions for each type of cover. For example, are there age limits or certain events, activities or locations where cover is not provided?
- Make sure the level of cover is adequate for your needs. Sometimes, paying a higher premium just might be worth it.
- Make sure the scope of cover is adequate. For example, are volunteers and work experience placements included, and will workers be covered at all possible locations?
Managing your insurance
Once you have insurance cover, it is important to keep your details up to date as your situation changes.
Many insurance policies have a schedule attached and you may not be covered if your current activities, locations or key personnel (such as board members or management) are not listed.
Depending on the legal structure of your organisation and your activities, there are a number of insurances you may wish to consider, and some may be legally required.
Please note, this is not an exhaustive list and you should talk to an insurance broker to identify all your insurance needs.
Directors and Officers Liability
Protects (indemnifies) the Directors and Office Bearers of your organisation against third party claims made against them for Wrongful acts while acting as an Officer of your organisation. These acts may include breach of duty or authority, breach of trust, neglect, errors or omissions, and misleading statements.
- Incorporated Associations must indemnify its office holders under the Associations Incorporated Reform Act 2012 (Vic) and you may wish to consider Directors and Officers Liability insurance depending on your risk profile.
This insurance provides cover for compensation and damages claims by employees who are injured or become ill because of their work.
- For most employers, a WorkCover Insurance policy is mandatory under the Workplace Injury Rehabilitation and Compensation Act 2013 (Vic).
See the Do I need insurance? page on the Victorian WorkCover Authority website for more information.
Volunteer Personal Accident
Covers your voluntary workers for personal injury sustained while undertaking their duties, including compensation for loss of income from their regular occupation and non-Medicare medical expenses.
- Some memberships and online services will require that you have Personal Accident cover for your volunteers.
This insurance will indemnify your organisation for personal injury and/or property damage claims by third parties that claim their injury or loss was caused by your organisation’s negligence.
- If you have an office or shop, or any premises that is accessed by clients or members of the public, you may wish to consider Public Liability insurance.
Indemnifies your organisation against claims by third parties that claim their injury or loss was caused by your organisation’s sale, manufacture or distribution of its products.
- If you sell or distribute food, or merchandise is part of your fundraising strategy, you may wish to consider Products Liability insurance.