Association Liability

Association Liability Insurance

Association liability insurance is a type of insurance coverage designed to protect associations and non-profit organisations from legal claims related to their management decisions and operations.

Its a packaged product that includes coverage for directors & officers liability, employment practices liability, trustee liability, professional indemnity, employment practices liability, statutory liability and crime.

It is suitable for any organisation that is structured as an association or not-for-profit. Some of the reasons why these sorts of organisations would purchase association liability include:

• Protection from lawsuits: association liability insurance helps protect organisations from the financial burden of defending against lawsuits related to issues such as employment practices, governance decisions, and financial management.

• Risk management: by having this insurance in place, associations and non-profits can mitigate the financial risks associated with legal claims, which can arise from various stakeholders including employees, members, donors, and the public.

• Enhanced credibility: having association liability insurance can also enhance the credibility of the organisation in the eyes of stakeholders, demonstrating a commitment to responsible governance and risk management.

• Protection of management: Quite often, directors and officers of associations and not-for-profits are regularly volunteers or receive a very low stipend. Having association liability insurance in place helps to attract directors and officers as it provides them with the peace of mind that they would be covered in the event of a claim against them.