20 January 2020

Not for profit and community care-based organisations have the ability to make a long-lasting impact on their chosen area of purpose, yet can often be left both financially and reputationally exposed without appropriate advice from an insurance broker.

A broker can help navigate the mirage of organisational exposures, through proper advice on respective insurance covers, risk management and a detailed understanding that no two organisations are ever the same.

The following are just three examples of the common exposures and pitfalls faced by not for profit and community care-based organisations:

Public and Products Liability:

Public Liability is an essential coverage that protects your organisation against allegations that someone has suffered bodily injury, property damage or various types of personal injury arising from your premises, your operations or your products.

Some common examples of its intention are:

• Protection for the products or goods your organisation produces, be it products sold for profit or donated as a resulted of your charitable activities;

• Third party property damage that occurs as a result of your activities or by your staff/volunteers whilst undertaking work on behalf of your organisation;

• Death or bodily injury to third parties including defense costs, which you are legally liable to pay compensation for.

An example would be a member of the public attending an aged care facility. Due to inadequate warnings and poor maintenance not acted on, the member trips over a raised concrete section of a walkway and suffers considerable and irreparable injuries. The member as such raises a bodily injury claim for compensation and damages, which the organisation is legally liable to compensate for.

Association Liability

Typically Association Liability is an amalgamation of Professional Indemnity and Directors and Officers insurance, specifically designed for the exposures Not for Profit organisations face. This policy provides protection to individual office bearers and the association against wrongful acts during the management of the association, employment practices liability and fidelity. The policy also provides coverage to the association against claims for financial loss arising out of a breach of professional duty by the association.

Some common examples of its intention are:

• Employment practices breaches, such as alleged sexual harassment claim, unfair dismissal and bullying allegations raised against the organisation

• Office bearer’s liability

• Errors and omissions and resulting financial loss

• Failure of the board regarding the management and operation of the association

• Theft due to a member stealing proceeds from a fundraising event.

Volunteer workers policy

Volunteer workers often are the life-blood or back bone of not for profit and community organisations. Without them, the organisation comes to a grinding holt, so it’s vital that in the event of an accident that sufficient cover is in place and your organisation is aware how to respond accordingly. As volunteers are not covered by workers compensation insurance policies, have appropriate cover with solid risk management advice ensuring you are protecting your most precious commodity.

Example: A volunteer suffers an injury whilst performing manual work on behalf of the organisation. The volunteer requires initial medical treatment covered by Medicare but requires ongoing medical treatment which is out of pocket, such as physiotherapy. If the volunteer is in paid employment and cannot fulfil their duties, compensation for lost weekly income can also be covered under this policy section.

Some common examples of its intention are:

• Provides lump-sum compensation for accidental death and disability;

• Covers loss of income via weekly benefits for volunteers that are injured and cannot undertake their usual paid employment;

• Emergency home help;

• Out of pocket medical expenses not covered by Medicare (rehabilitation for example).

Some other examples of key covers which not for profit and community care organisations may require are:

• Property Insurance and Consequential Loss cover - ensuring your property and physical assets are adequately covered in the event of a loss.

• Motor Fleet and Motor Fleet Contingency – covering vehicles used in connection with the organisation and non-owned vehicles used for volunteer purposes.

• Cyber Insurance – A considerable threat now facing all not for profits and provides protection first and third-party protection for hacking attacks, breaches of privacy, social engineering and business interruption.

With our not for profit expertise, Findex Insurance Brokers can take this considerable burden out of your hands, by providing sound advice and a detailed understanding of your mission. This not only gives confidence that you and your people are well protected, but also allows you to get back to your chosen cause and great things achieved in the wider community.

Findex can help protect your organisation through detailed analysis, reviewing all aspects of your activities, people, products and services. This ensures your insurance program is robust, properly disclosed and working in-tandem with your organisation to reduce hazards through proactive risk management. Get in touch to discuss how we can help your organisation.

Findex Insurance Brokers Pty Ltd ABN 17 139 730 528 AFSL No. 342526 is owned by Findex Group Limited.

While all reasonable care is taken in the preparation of the material on this website, to the extent allowed by legislation Findex Group Ltd accept no liability whatsoever for reliance on it. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Findex Group Ltd assumes no obligation to update this content after it has been issued. The information contained is of a general nature only and does not take into account your objectives, financial situation or needs. You should consider whether the information is suitable for you and your personal circumstances. Before you make any decisions in relation to a financial product, you should obtain and read the relevant Product Disclosure Statement or information statement. You should seek personal financial advice before acting on any material. 20 January 2020.