On this page
- Introduction to risk and insurance
- Risk management and insurance for community organisations guide
- Indemnity for office holders of Victorian incorporated associations
- Common questions about risk and insurance
Community organisations face risks arising from their activities, people, property, finances and interactions with others. Appropriate planning and risk management can help organisations avoid or reduce many of these risks.
Insurance can help manage the financial consequences of risks that cannot be avoided or adequately minimised. It may also be required by law or under a lease, funding agreement or other contract.
Our fact sheets and detailed guide explain how community organisations can identify and manage risks, assess their insurance needs and respond to incidents and claims.
Introduction to risk and insurance
Our introductory fact sheet covers:
- common risks for community organisations
- the impact of legal structure on liability
- measures to minimise risk
- insurance and insurance policies
- when insurance may be required
- selecting appropriate insurance for your organisation, and
- responding to incidents and claims
Risk management and insurance for community organisations
Our guide explains how community organisations can identify, assess and manage risks and determine whether insurance is appropriate.
The guide covers:
- common risks and key times to review risk and insurance
- practical measures to minimise risk
- insurance policies, obligations and common types of insurance
- risks associated with travel
- risks associated with sport and adventure activities, and
- responding to incidents and insurance claims
Indemnity for office holders of Victorian incorporated associations
The Associations Incorporation Reform Act 2012 (Vic) requires a Victorian incorporated association to indemnify its office holders against liabilities incurred in good faith while carrying out their duties.
Our fact sheet explains:
- how the statutory indemnity operates
- the financial risk the indemnity can create for an association
- whether insurance may help manage that risk, and
- directors’ and officers’ or management liability insurance
Common questions about risk and insurance
What insurance does a not-for-profit need?
There is no single set of insurance policies that every not-for-profit needs. Appropriate insurance will depend on the organisation’s activities, people, property, legal and contractual obligations, and the financial risks it could not meet itself.
Common types of insurance include workers compensation, volunteer personal accident, public liability, products liability, professional indemnity, buildings and contents, directors’ and officers’, cyber, fraud, motor vehicle and travel insurance.
Some insurance may be required by law or under a contract, while other cover is optional. Organisations should regularly assess their risks and review whether their insurance arrangements remain appropriate.
What is directors’ and officers’ (D&O) insurance?
Directors’ and officers’ liability insurance, commonly called D&O insurance, can help protect directors, committee members and other office holders against certain liabilities arising from decisions and actions taken while carrying out their duties for an organisation.
Depending on the policy, cover may include compensation, legal defence costs and certain investigation costs. D&O insurance does not cover every liability and commonly excludes fraudulent, criminal and deliberately wrongful conduct. Similar cover may be included in a management liability policy.
Does our organisation need public liability insurance?
Public liability insurance is not required for every not-for-profit, but it is one of the most common types of insurance held by community organisations. It is also frequently required under leases, funding agreements, venue hire agreements and service agreements.
Public liability insurance generally covers certain compensation and legal costs where an organisation is legally liable for bodily injury, death or property damage arising from its activities. Organisations should carefully check who and what the policy covers, as exclusions and limits may apply.
Do volunteers need insurance?
Volunteers are generally not covered by workers compensation insurance, although limited exceptions apply in some circumstances. Public liability insurance may cover injury or damage caused by volunteers to other people, but it may not cover injuries suffered by volunteers themselves.
Organisations that engage volunteers should check their existing policies and consider whether volunteer personal accident insurance is appropriate. Volunteers should understand what cover applies, what is not covered and how to make a claim.
How much does volunteer insurance cost?
There is no standard cost for volunteer personal accident insurance. The cost will depend on factors such as the number and age of volunteers, the activities they perform, the risks involved and the level of cover provided.
Organisations should compare the scope of cover as well as the premium. A lower-cost policy may provide narrower protection or exclude certain volunteers or activities. Group insurance may also be available through a peak body, umbrella body or related organisation.
The content on this webpage was last updated in October 2026 and is not legal advice. See full disclaimer and copyright notice.
