Insurance and risk management

Insurance assists an incorporated association to manage its risks by providing cover against a range of unexpected events that may otherwise leave the association in difficult circumstances.  An incorporated association should give careful consideration to its insurance needs and obtain professional assistance to ensure that it has appropriate insurance that suits its size, activities and resources.  This chapter provides an overview of the kinds of insurance products that an incorporated association may wish to consider, and some tips on obtaining insurance.

Key Points

  • There are various types of insurance cover that an incorporated association may require.
  • Some insurance is compulsory for incorporated associations (eg workers' compensation for employees).
  • A financial institution providing financial assistance to an incorporated association may insist on the association maintaining certain minimum levels of insurance cover.
  • An incorporated association should have a proper risk management program.
  • If in doubt, get professional advice from an insurance broker or lawyer.