P&Cs Qld arranges optional insurances which P&C Associations can elect to insure. Below is a brief summary on what these cover and why your P&C may wish to consider obtaining the policies.
Who does the Association Liability (Management Liability) policy cover?
The Association itself and its Office Bearers, depending on the coverage. Office Bearer is broadly defined and includes directors, officers, committee members, employees of the Association, etc.
What does the Association Liability (Management Liability) policy cover?
Association Liability insurance is a specialist, packaged product developed as a cost-effective solution for Associations, Not-For-Profit Organisations, Charities, etc to purchase a number of covers in addition to the standard Directors' & Officers' Liability cover. These additional covers include Corporate Liability, Employment Practices Liability, Crime Protection and Statutory Liability. A summary of these covers is as follows:
- Directors' & Officers Liability (D&O)
Liability for wrongful acts committed by the principals, partners, trustees, directors, and officers of the Association arising out of any error, misstatement, omission, neglect, negligence, breach of duty, breach of confidentiality and mismanagement.
- Corporate Liability
Similar claim scenarios as D&O but the trigger is liability arising from an actual or alleged act, error or omission of an Association.
- Employment Practices Liability
Alleged Employment Practices breaches, such as harassment, discrimination, bullying, wrongful/unfair dismissal, etc.
- Crime Protection
A range of crime related events when there has been a direct financial loss. This can include employee fraud or dishonesty, third party crime, electronic and computer crime, etc.
- Statutory Liability
Liability of the Association for unintentional breaches of various Australian statutes (and fine if not outlawed by legislation).
Benefits of an Association Liability (Management Liability) policy:
While some coverage for Employment Practices Liability is included under the Group General & Products Liability insurance policy, it is important to note this is a shared limit. This means the limit may be partially or completely exhausted by claims made by P&Cs Qld or it's member P&C Associations during the policy period, representing a potential exposure. Procuring an Association Liability (Management Liability) insurance policy will assist with this exposure by providing the P&C Association with its own policy and individual limit that will remain unaffected by claims made by any other P&C Associations.
If you would like more information about this policy or a quote for your review and consideration, please contact Willis:
Ben Donnelly
P: 07 3167 8540
E: [email protected]