Board members and senior managers can be held personally liable for their actions or failure to act in certain circumstances.

Association Liability Insurance provides protection for the organisation as well as its Directors and Officers from a range of exposures relating to employment practices, fraud or fines and penalties. It also extends to protect against errors or omissions in the provision of advice and training.

The Association Act of 2009 introduced increased penalties for Director and Officers who breach their legal duties.  Examples of such breaches are:

• Conflict of interest
• Misuse of knowledge gained on Board
• Misuse of position on Board
• Trading while insolvent
• Complicit involvement

An Association Liability policy typically covers your legal defence costs as well as the compensation and legal costs incurred in response to allegations of ‘wrongful acts’ committed by a Not For Profit organisation, and/or its management.

Who does Association Liability protect?

Normally the association and its directors, secretaries, officers, trustees, committee members, employees, volunteers and any individual acting for the association at the direction of a board or management committee of the Association.

It is important to note however that cover will not apply in cases where illegal personal gain or advantage is acquired, or a criminal or fraudulent act is proven.

Who needs Association Liability Insurance?

• Industry Associations
• Charities and other Benevolent Societies
• Educational Institutions / Universities
• Political Associations
• Professional Associations
• Licensed Clubs
• Religious and Community Organisations
• Sporting Associations
• Unions

Every Not For Profit organisation’s insurance needs are different, and will require a tailored risk solution. Whitbread recommend you speak to an insurance broker who can assist you in obtaining the right cover for your organisation.