What is Association Liability Insurance?
Association Liability insurance is a type of coverage designed to protect not-for-profit organisations against a variety of potential legal and financial risks. It incorporates elements of professional indemnity cover and management liability cover.
It typically combines several key coverages into a single policy, including:
- Directors and Officers (D&O) Liability
- Professional Indemnity
- Employment Practices Liability
- Crime Coverage
- Fidelity Guarantee
Association Liability insurance is critical for the non-profit organisations and associations and provides a broad range of coverage to address the unique needs of these organisations.
What Does Association Liability Insurance Cover?
It protects the organisation, the office bearers and the employees against legal costs and damages expenses arising from allegations of misconduct, breach of duty, mismanagement and more. It provides financial protection by covering legal costs and settlements that could otherwise deplete resources.
Some other benefits of Association Liability insurance include:
- Legal compliance – ensuring that the association complies with legal and regulatory requirements, reducing the risk of penalties or legal action.
- Risk management – providing a comprehensive risk management solution, helping associations identify and mitigate potential risks.
- Peace of mind – for board members, officer, and volunteers, knowing they are protected from personal liability and financial loss.
