Associations Liability Additional Information
A not-for-profit status is no protection against legal liability risks. There is now much greater expectations of the proper performance of management and administration of any such body
All types of sporting, recreational, professional, industrial and charitable associations face risk exposures which in former time might have been in the domain of the corporate world. Increasingly they are accountable for the quality of the services or advice they offer to their members and to the public.
The risks faced by an association are not limited to the association as an entity.
Individual officers or employees responsible for the governance, administration and management of associations may find themselves held personally liable for their own actions or those of their colleagues. In some situations they may be indemnified by the association but their personal assets may also be at risk.
The policy is therefore designed to protect the individual and the association.
As well as providing indemnity for the costs of compensatory damages claims the policy provides for the costs of legally defending any claims. This allows access to professional legal services to protect the interests of all concerned in the claim.
