The not-for-profits status of volunteer organisations does not relieve them of their obligations to their volunteers and members of the public. These are very similar to those of any profit-making business.
Volunteer organisations should protect themselves with association liability insurance against claims which could cause serious, and possibly fatal, damage to the organisation.
It’s understandable that a volunteer organisation should wish to reduce its expenditure on items like insurance. But skimping on liability insurance is never a wise economy. Simply defending a claim for workplace malpractice, even if it is eventually rejected, can impose catastrophic legal costs on a charitable organisation. Insurance cover that addresses these risks is a vital safeguard for the survival of any voluntary association.
Arranging Voluntary Association Insurance – Some Things to Consider
Many volunteer associations rely on large numbers of volunteers to do sporadic, occasional work at irregular hours. Maintaining necessary levels of OHS training and education is proportionately more difficult for not-for-profits, and this ma lead to increased risks of injury. Not-for-profits managers should take care to design training curricula appropriate to such a dispersed workforce. Online, cloud-based training has brought solutions to many of these issues, and are a great way to reduce their vulnerability to claims for injury, damage or loss. They should also give careful thought to how the activities of their volunteers, and their visits to the association’s premises, are logged and monitored.
The team at Sydney Insurance Brokers includes specialists in Association liability who have particular expertise in the unique insurance needs of voluntary associations. If you would like to review the insurance needs of your Association, or for which you have governance responsibility, call us today.