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Insurance and risk
Organisations should always consider the risks that arise from operating and interacting with others. Risks might involve clients, employees, volunteers, the public and members.
Your organisation may need to develop a risk-management strategy, which could include insurance as well as practical steps that can reduce risks.
It's important to include risk assessment as a standing agenda in a community organisation.
When your organisation enters into new relationships or conducts new activities, make sure new risks are considered.
Sometimes new insurance will need to be purchased or extended, or there may be other steps your organisation can take to alert people of risks and reduce the likelihood of a risk eventuating.
While insurance is an important consideration for not-for-profit groups, sometimes it is essential under the terms of a lease or a funding agreement.
There are many different kinds of insurance that address different kinds of risks.
Common types of insurance include:
- public liability
- directors' and officers'
- asset or contents insurance
- event-specific insurance, and
- volunteer protection
Our guide to Insurance and Risk Management for Community Organisations provides information on risk management strategies and different insurance products that can be used as part of a community organisation's risk management.
Indemnity for office holders of Victorian incorporated associations
The Associations Incorporation Reform Act 2012 (Vic) includes an indemnity provision that requires an incorporated association to indemnify its office holders for liabilities they incur in good faith while performing their duties.
Our fact sheet covers the issues that Victorian incorporated associations should consider including:
- what is the indemnity?
- does the indemnity mean we need to take out insurance?
- the risk that indemnity creates and how to manage this risk, and
- directors’ and officers’ insurance
Risk Management Guide and Health Check – A guide for not-for-profits and social enterprises prepared by MinterEllison and published by Koda Capital.
The content on this webpage was last updated in March 2022 and is not legal advice. See full disclaimer and copyright notice.