A variety of organisations fall within the term “associations”, including professional bodies, sporting associations, not-for-profit organisations and associations representing trade industries. Association liability insurance provides an effective insurance solution to cover these entities along with charitable trusts.
Despite their not-for-profit or charitable nature, associations have faced a significant increase in liability in recent years. This is due to heightened expectations of responsibility and accountability being applied to all sorts of organisations and their management teams. Legal liability can be incurred through the advice or services they provide to their members or to members of the public.
The risk presented by an association or charitable trust is not limited to the organisation itself. Members of the board of management, board of trustees or management committee are legally liable for their conduct, potentially placing their personal assets at risk if a claim is brought against them. The association may indemnify its officers for claims made against them arising from the discharge of their duties on its behalf. This indemnity however is not always guaranteed as there may be insufficient funds or the circumstances may not permit the indemnification to operate.
An Association Liability policy will address the concerns and liabilities of both the association, and the officers of the association.
Generally Association Liability cover is divided into three main sections:
- Professional Indemnity – covers the insured organisation for claims for damages made against it alleging financial loss arising from negligence in the conduct and execution of its business
- Officers Liability – covers individual committee members and officers against personal liability for claims for damages made against them arising from the discharge of their duties, provided they are not entitled to be otherwise indemnified
- Organisation Reimbursement – covers the insured organisation where it indemnifies its officers for claims for damages made against them arising from the discharge of their duties on its behalf
Marsh can provide a tailored insurance product to suit an association’s particular needs.