If your Association is legally incorporated this policy will cover any claim in relation to potential financial loss or compensation associated with the management of activities and the duties of your Officers and Officials.

Customer associations liability

Understanding Association and Officials Liability

This policy will protect your Association and your Committee Members, Officials and Officers against claims made against it/them jointly or individually arising from any ‘Wrongful Act’ committed or allegedly committed by it/them in its/their capacity as an association or an Officer of the association. This can occur through a breach of duty, breach of power of authority or misleading statement.

Officers of incorporated clubs and community groups do not always understand that in undertaking their duties they also assume personal liabilities. That is why it is so important for you as an incorporated body, to have this cover.

Policy Wording: Association & Officials Liability

This is what association officials liability insurance can protect you from

  • Legal Costs Covers your organisation’s legal costs if you are sued by a third party alleging they have suffered a loss because of an alleged ‘Wrongful Act’.

  • Wrongful Acts What is a Wrongful Act? It is defined as a negligent act or omission, breach of duty, breach of power of authority or misleading statement.

  • Additional Benefits Our policy has been extended to include these additional benefits.

    • Fraud and dishonesty – sublimit $25,000
    • Statutory fines and penalties – sublimit $100,000
  • Investigation Costs Costs and expenses incurred by the Organisation or an Officer to investigate a claim further can be covered by the policy.

Customer liability cover

Legislation – What You Need To Know

It is important that as an Incorporated body you understand the legislative requirements in your State because each State has its own unique statute relating to the governance of not-for-profit groups.

While both South Australia and Victoria have specifically worded legislation relating to the immunities and indemnities available to Officers which does not appear in the legislation of other States this does not mean that your Officers are immune from allegations of wrongdoing. Read more.

Your organisation can indemnify an Officer from wrongdoing using the assets of the organisation, but have you considered what your organisation would do if these were used up or if your group has minimal or no assets to cover the full amount of their liability? In this instance, the Officer would be liable for the remainder or full amount due. This is why we recommend your organisation to have an Association & Officials Liability policy.

group meeting example officials liability

Why Do I Need Association & Officials Liability?

Office bearers of incorporated associations have a responsibility to exercise their powers and discharge their duties at all times with reasonable care and diligence.

Which means by undertaking these duties office bearers assume potentially large personal liabilities, it is very important you have Association and Officials Liability cover in-place.

Discover more about Association Officials Liability Insurance:

Liability Limit

Organisations can choose a policy with a $2M liability limit or a $5M liability limit. In the quote section we ask for information regarding your total members numbers (not just the number of committee members) – as per your members register or similar record. We also ask that you inform us of any specific type of advice you provide these members to assist us in determining if this policy provides the appropriate protection for your organisation and officials.

This Policy Is ’Claims Made And Notified‘

This is a type of insurance contract. Claims notified after expiry of the policy may be covered (at least in part) in some circumstances however we strongly recommend that you implement a program to ensure that all claims are identified and notified immediately and within the policy period to avoid difficulties.

This means that the policy covers you for claims which are made against you and notified to the insurer during the period of cover, irrespective of the date when the cause of action may have occurred. The policy should be maintained while the Association is in existence. If the Association decides to close down a “run-off” cover should be considered in case a claim is made in the future. But a practical issue is how this cover is funded if the organisation is no longer operating.

A ’Claims Made And Notified‘ Policy May Not Respond To
  • claims or circumstances known to you or notified to an insurer prior to inception of the policy;
  • circumstances notified after expiry of the policy;
  • claims notified after expiry of the policy.

Where you become aware of facts or circumstances that might give rise to a claim against you, you should forward to us a notice in writing outlining those facts or circumstances as soon as reasonably practicable and before expiry of the policy period. We will forward the notice to the insurers on your behalf.

Where such notice is given, the policy will, subject to its terms and conditions, cover you notwithstanding that a formal claim is not made against you by the third party until after that particular policy of insurance has expired. Delay in notifying the insurer or failure to provide all relevant facts could result in the claim being denied.

Wrongful Acts Cause Claims

‘Wrongful acts’ are what cause claims to arise and are defined on page 3 of the policy wording. These include:

  • Mis-Leading Statements
  • Negligent Acts
  • Errors Or Omissions
  • Breach Of Duty
  • Breach Of Power Of Authority

Our policy has been extended to include these additional benefits:

  • Fraud and dishonesty – sublimit $25,000
  • Statutory fines and penalties – sublimit $100,000

Please read the policy endorsements below to ensure you understand the nature of the cover provided.


An excess is a payment you are required to make in the event of a claim, however most of our policies have low or no excess. This base policy has no excess.


Page 3

Definition "You, your" is amended to read as follows:

"You, your" – the Club, Association or Community Group named in the Certificate of Insurance issued by Local Community Insurance Services.

Page 4 Extensions

  • (d) Fines and penalties

We will indemnify you against any Penalty and Defence costs resulting from a Claim by a Regulatory authority for a Wrongful breach which would otherwise be excluded by reason of the exclusion for any fine or penalty or punitive, exemplary or aggravated damages in paragraph (a) of the definition ‘Loss’ where the Claim is first made on You and notified in writing to us in the period of insurance.

Provided always that we will not be liable to indemnify you in respect of any Penalty and Defence costs in respect of any such Claim arising directly or indirectly from or which is based upon, attributable to, or in consequence of any:

  • (a) dishonest, wilful, intentional or deliberate Wrongful breach; or
  • (b) wilful, intentional or deliberate failure to comply with any lawful notice, direction, enforcement action or proceeding under any Act; or
  • (c) your gross negligence or recklessness; or
  • (d) requirement to pay taxes, rates, duties, levies, charges, fees or any other revenue or impost.

Penalty means any monetary sum payable by you to any regulatory authority pursuant to a Wrongful breach by you but excluding:

  • (a) any amounts payable as compensation
  • (b) any compliance, remedial, reparation or restitution costs
  • (c) any damages, including but not limited to any exemplary or punitive damages
  • (d) any consequential economic loss
  • (e) any amounts uninsurable under the law pursuant to which this Policy is construed
  • (f) any legal costs and associated expenses of the Regulatory authority

Defence costs means reasonable costs, charges, and expenses (other than regular or overtime wages, salaries or fees of any Insured person) incurred by us or by you with our prior written consent (and such consent will not be unreasonably withheld) in defending, investigating or monitoring any Claim, or proceedings and appeals from them, together with costs of the proceedings and appeal. Where you are not indemnified under this section, only those costs, charges and expenses incurred solely and exclusively for the benefit, and on behalf, of an Insured person will constitute Defence costs.

Defence costs in this extension are part of, and not in addition to, the aggregate sub-limit of liability applicable to this extension and payment by us of defence costs reduces the aggregate limit of liability by the amount of any such payment.

Wrongful breach means any conduct by you which results in a contravention of:

  • (a) any occupational, health, or safety legislation enacted by the Commonwealth of Australia or any State or Territory of Australia,
  • (b) any Environmental legislation.

Claim means a written or other notice by a Regulatory authority in connection with any claim, Official investigation or inquiry, or penalty proceedings.

Sub-limit of liability applying to this extension
The maximum amount payable by us under this extension to the Policy inclusive of Investigation costs and expenses and Defence costs for any one claim and in the aggregate during the Period of insurance, irrespective of the number of:

  • Claims and/or
  • Locations, premises, situations and/or
  • persons/entities insured

shall be the $100,000.

(e) Fraud and dishonesty

We will provide coverage in respect of any Claim which would otherwise be excluded by reason of Exclusion (a) of the policy. Provided always that:

  • (i) such coverage shall not be provided to any person committing or condoning any act, omission or breach excluded by reason of Exclusion (a);
  • (ii) such coverage shall not apply to loss of money, negotiable instruments, bearer bonds or coupons, stamps, bank or currency notes.

Sub-limit of liability applying to this extension
The maximum amount payable by us under this extension to the Policy inclusive of Investigation costs and expenses for any one claim and in the aggregate during the Period of insurance, irrespective of the number of:

  • Claims and/or
  • Locations, premises, situations and/or
  • persons/entities insured

shall be the $25,000

Other policies you should consider:

In our experience of working with over 10,000 community groups over the past decade, we recommend that all community organisations should consider these core insurance covers:

Public & Products Liability Insurance

Volunteers Insurance

Festival & Fairs Event Insurance