Is an association required to hold insurance?
The Associations Incorporation Act 2009 does not require associations to take out and maintain any specific type of insurance.
However, as an association must comply with any relevant State and Commonwealth legislation applicable to its operations, an association may be required to hold insurance under other applicable legislation. For example, an association with employees may be required to hold workers compensation insurance.
Do we need insurance?
As part of their corporate governance obligations, committee members are responsible for:
- assessing the risks applicable to the activities of the association, and
- determining if insurance is required, and if so the type and level of cover.
There are a number of different insurance policies that may be appropriate, for example:
- public liability insurance
- directors and officers liability insurance
- associations liability insurance
- personal accident insurance
- occupational health and safety cover
- workers compensation insurance
- property and/or contents insurance
- fidelity insurance
- building insurance
- travel insurance.
Where can we get insurance?
A number of insurance companies have insurance products that may be suitable for community organisations.
The Council of Social Service NSW (NCOSS) undertakes 'bulk buying' insurance programs to assist non-government community service organisations to identify their insurance and risk management needs. For more information contact NCOSS on 02 9211 2599 or visit the website.
Information on identifying insurance requirements for associations engaged in sporting activities is available on the Sport and Recreation website.
The NSW Sporting Injuries Insurance Scheme is a State Government initiative providing cost-effective insurance cover for people who are seriously injured while participating in a sporting activity. The Scheme is open for membership to all sporting organisations operating in NSW. Go to the NSW Sporting Injuries Insurance Scheme website for more information.