Becoming incorporated does not mean an association is automatically protected from exposure to risk. There are various reasons to obtain insurance:

• compulsory insurance requirements imposed by law (e.g. worker compensation);
• the association may have property or other assets that should also be insured;
• the association organises or participates in activities that require suitable insurance (e.g. sporting activities) or
• 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.