Types of insurance

The following are common types of insurance that may be relevant to associations.

  • Professional indemnity - covers claims in respect of a breach of duty.
  • Portable/ valuable items - covers loss of specified items.
  • Theft - to cover theft of contents, cash and stock.
  • Events insurance - covers an event against loss (e.g. cancellation due to bad weather).
  • Workers' compensation - covers employees for work related injuries.
  • Public liability insurance - covers claims by third parties; e.g. negligence
  • Directors’ and officers’ liability- covers the directors and officers against legal liability.
  • Volunteer insurance - covers volunteers for personal injury and public liability.
  • Building insurance - covers against events such as fire, storm and vandalism.

Compulsory insurance

Some insurance cover is compulsory under applicable laws. For example, it is compulsory for an incorporated association that employs staff to have workers' compensation insurance. An association should consult a qualified adviser (such as an insurance broker or lawyer) to determine its compulsory insurance obligations.