Below are some examples of covers provided by this policy which can protect your organisation. Please note, covers listed below are subject to limits, sub-limits, endorsements and exclusions as described in the Policy Wording.
The Insurer’s ‘Policy Wording’ sets out the actual coverage terms, conditions, limitations and exclusions provided under the policy.
Please access these documents on the links provided and read them thoroughly in conjunction with your Policy Schedule and call us immediately if you require clarification on any issue.
It is important that as an Incorporated body you understand the legislative requirements in your State because each State has its own unique statute relating to the governance of not-for-profit groups.
The obligations of your committee officials can differ from State to State, and you need to be aware of these because you and other Officers may have a statutory duty of care or be required to act with due diligence.
Also, the indemnity for Officers under the Associations Act may vary in each state.
Dispute between two factions (parent of players) on committee.
One faction left and formed a new rival club in same league.
Their children and others requested transfer to the new Club and were denied on the basis of ‘required player(s)’.
Legal action resulted — intending players wanting transfer vs club denying release vs State Association.
Unfair dismissal — CEO contract of employment was terminated.
Claim was damages for breach of contract, assertion of failure of due process and lack of substantive reasons to justify termination.
Peak body (professional association)
Insured organised national conference and in doing so used an old format invitation displaying a logo for which permission has not been sought to use.
Person was receiving counselling with employee of service.
Employee entered a relationship with the person they were counselling. The allegation was employee took advantage of the person at time of grief and breached duty of trust.
Claimant was removed from National Board position and membership of association terminated.
Allegation was discrimination due to disability.
Unfair dismissal.
Prosecuted claim in the Fair Work Commission.
Peak Body (Community Accommodation)
Alleged unfair dismissal despite proof of theft of substantial funds on over 100 occasions.
Prosecuted claim in the Fair Work Commission which was defended.
Alleged defamation.
Resulted from comments by an Officer against an individual who was a prominent business owner in the location.
Community Club — Cultural Group
Alleged defamation.
Comments by officer expressed concern that video’s posted by member might potentially be detrimental to the Club as they contain Adolf Hitler’s most important speeches.
Procedural dispute.
Denial of representation on National Board of Governance, a position held for some years, following the election of a new State President.
Our frequently asked questions about Association Liability Insurance.
Please note that these FAQs are of a general nature, and the specific terms and conditions of your Insurance policy will apply to any claims.
It is always recommended to refer to the Policy Wording and consult with LCIS staff for detailed information about coverage and any specific questions you may have.
Association Liability Insurance can cover a range of risks and liabilities. It includes coverage for legal costs if the organisation is sued by a third party alleging a loss due to an act, error, omission, or breach of duty. It also covers claims made by employees against the organisation or its officers, such as wrongful termination or discrimination. Additionally, it provides coverage for losses resulting from fraudulent or dishonest acts committed by employees or volunteers, as well as fines or penalties imposed under applicable laws or regulations (where such payment is allowed by law). The policy may also include coverage for damages arising from acts, errors, or breaches of duty related to the organisation's services.
Office bearers of incorporated associations have a responsibility to exercise their powers and discharge their duties at all times with reasonable care and diligence. This means that by undertaking these duties office bearers may assume potentially large personal liabilities, so it is highly recommended you have Association Liability cover in place.
No, Association Liability Insurance is different from Public Liability Insurance. Public Liability Insurance typically covers bodily injury and/or, property damage, to third parties. Association Liability Insurance, on the other hand, focuses specifically on the unique management related risks and liabilities faced by a community group or not for profit organisations, such as legal claims, employment practices, fidelity, statutory liabilities, and civil liability professional indemnity.
No, the Association Liability policy has a nil excess. This means that you are not required to make any payment in the event of a claim. The Insurance coverage will cover, subject to the Limit of Liability Insured, the full claim amount without any deduction. As noted, cover is to the Limit of Liability Insured, amounts can vary by policy section. The Policy Schedule will outline the details of your coverage in the event of a claim.
It is important that as an Incorporated body you understand the legislative requirements in your State because each State has its own unique statute relating to the governance of not-for-profit groups.
The obligations of committee officials can differ from State to State, and you need to be aware of these because you and other Officers may have a statutory duty of care or be required to act with a level of due diligence. In addition, the indemnity provisions available to Officers by the organisation under the relevant Associations legislation may vary by State.
Yes, the obligations of committee officials can vary from State to State. It is important for committee officials to be aware of these differences as they may have a statutory duty of care or be required to act with a level of due diligence based on the specific State’s legislation.
No, the indemnity for officers under the Associations Act may vary in each State. It is important for officers to be aware of the specific provisions and protections provided by the Associations legislation in their respective State.
The specific coverage and limits of Association Liability Insurance, including the Limit of Liability, can vary depending on the policy. The Limit of Liability refers to the maximum amount that the Insurance company will pay for covered claims.
To determine the specific coverage and limits of your Association Liability Insurance, it is important to carefully review the Policy Wording and/or Product Disclosure Statement provided to you.
The LCIS Association Liability Insurance allows organisations to choose a policy with a $2M Liability Limit or a $5M Liability Limit – if you are a community group seeking limits higher than the $5M Liability Limit, you are possibly a group which needs an Insurance cover tailored specifically for your organisation’s risk(s).
It is important to be transparent and provide all relevant information to ensure the accuracy and validity of the Insurance coverage. You need to keep the Insurer updated about any changes to your organisation before renewing the policy – this can be done by discussing those changes with us. It is your responsibility to inform us about changes that impact on the nature of the risk. It is not critical to advise changes in the members of the management committee but where there are changes in the activities of the group you should advise us in writing, so their facts are clear.
Duty of Disclosure is an important concept in Insurance that applies to any kind of coverage.
It means that you have a responsibility to disclose all information requested by the Insurer and any information that you believe is relevant for them to accept the risk Insured by the policy.
If you fail to disclose relevant and material information as required by the Duty of Disclosure, it can have consequences for your Insurance coverage. If you fail to disclose information that you are required to, the Insurer may take certain actions.
- They may cancel your contract or, reduce the amount they will pay you in the event of a claim.
- If the failure to disclose is fraudulent, the Insurer may refuse to pay a claim and treat the contract as if it never existed.
So, it is important to be transparent and provide all relevant information to ensure the validity of your Insurance coverage.
It means that you have a responsibility to disclose all information requested by the Insurer and any information that you believe is relevant for them to accept the policy. In the context of Association Liability Insurance, the Insured Association has a duty to disclose any material information that could impact the Insurer's assessment of the risk involved. This includes disclosing any past claims, legal actions, or circumstances that may give rise to a claim in the future.
Below is the Duty of Disclosure which applies to all the LCIS policies. It is important that you disclose to us all information which we request and any information which you feel is relevant to us accepting the policy. If you are unsure, talk to the LCIS team for guidance.
In addition, you must keep us updated of any changes to your organisation prior to renewing the policy.
Some examples of the information we require for the Association Liability Insurance policy includes (but not limited to):
Before you enter into an Insurance contract, you have a Duty of Disclosure under the Insurance Contracts Act 1984. You have a Duty to tell us anything that you know, or could reasonably be expected to know, may affect the Insurer’s decision to insure you and on what terms. You have this Duty until the Insurer agrees to Insure you. You have the same Duty before you renew, extend, vary or reinstate an Insurance contract.
If we ask you questions that are relevant to the Insurer’s decision to insure you and on what terms, you must tell us anything that you know and that a reasonable person in the circumstances would include in answering the questions.
Also, we may give you a copy of anything you have previously told us and ask you to tell us if it has changed. If we do this, you must tell us about any change or tell us that there is no change. If you do not tell us about a change to something you have previously told us, you will be taken to have told us that there is no change.
You do not need to tell us anything that reduces the risk Insured, is common knowledge, the Insurer knows or should know as an Insurer, or the Insurer waives your duty to tell them about.
If you do not tell us anything you are required to, the Insurer may cancel your contract or reduce the amount it will pay you if you make a claim. If your failure to tell us is fraudulent, the Insurer may refuse to pay a claim and treat the contract as if it never existed.
This type of Insurance contract means that the policy covers you for claims which are first made against you and notified to the Insurer during the period of cover, irrespective of the date when the cause of action may have occurred. We strongly recommend that you implement a program to ensure that all claims/claims circumstances are identified and notified immediately and within the policy period.
The policy should be maintained whilst the Association is in existence. If the Association ceases operation, a ‘run-off’ cover can be considered in case a claim is made in the future. Should a ‘run-off’ cover be required, please talk to the LCIS team.
Where you become aware of facts or circumstances that might give rise to a claim against you, you should notify us in writing as soon as practical, before the policy expiry date.
We will then forward the notice to the Insurers on your behalf.
Delay in notifying the Insurer or failure to provide all relevant facts could result in the claim being denied.
