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1. Reasons for obtaining insurance

There are various reasons why an incorporated association may wish to obtain insurance. For instance:

  • Becoming incorporated does not mean that an association is protected from being exposed to risk;
  • There are certain compulsory insurance requirements imposed by law that may apply to an incorporated association. In addition, a financial institution providing financial assistance to an incorporated association may insist on minimum insurance coverage;
  • An incorporated association may acquire property or other assets that require or justify insurance protection;
  • An association may organise or participate in activities that require or justify suitable insurance (eg sporting activities); or
  • An incorporated association's members, executives, staff and volunteers may need to be insured against certain risks or personal liability that may arise as a result of their role in the association.