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 (e.g. 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.