|
 |
Insurance |
Insurance—why do you need it?Even the most prudent and effective person or organisation can't prevent accidents from ever occurring. However, insurance is not a substitute for risk management but just one of the tools you use to minimize the risks of accidents happening or of you or your organization being liable for accidents that may occur. The first step is to do everything reasonably within your power or ability to minimize the chance of accidents occurring. Insurance is needed to ensure that you, your organization and the people working for your organization are protected from financial liability in case damage is caused to someone else, or to someone else’s property, and also to protect you from financial loss in the event that your property is lost or damaged. To minimize the cost of that insurance though, it is important to ensure that you purchase insurance for the kinds of risks relevant to your organization, and don’t end up paying for a lot of cover for liabilities that aren’t relevant. For example, there is no point paying for property insurance to cover $100 000 loss, when the only property you have for your practice or activities is a sound system worth less than $3000. What are the different types of insurance that my group may need?Below is a list of the most common types of insurance needed. Only some types of insurance and not others may be relevant for your needs and it is best to actually discuss your specific needs with a broker or insurer and that you seek alternative advice and quotes. There can be a great deal of variation between policies on offer. Directors and Officers Liability InsuranceDirectors and Officers Liability Insurance is necessary where there is a risk that board or committee members could become personally liable for damage caused by the organization where the damage was caused because the board or committee members were in fact negligent in performing their duties. For example, a board member may negligently give some wrong advice that results in another person suffering damage. In such cases, and when the negligence can be proven, the board member can be liable for the damage, to be paid out of his or her personal assets. Building InsuranceBuilding insurance covers your premises against events such as fire, storm, vandalism etc. If you are just renting or hiring the premises, or have just been given permission to use them without any fee, you should ensure that the lease, hire or other agreement specifically states who is responsible for the building insurance. Fraud InsuranceFraud insurance provides cover against the misappropriation of funds by employees or committee members. In considering this cover, look at what the risk of such a loss is as against the cost of buying the cover. Personal Accident Insurance (Volunteer Insurance)Personal accident insurance (or as it is sometimes known - Volunteer Insurance) generally covers members, volunteers, officials or participants for any out-of-pocket expenses following accidental injury, disability or death while carrying out their work on your behalf of the organization, and normally covers loss of income if the person injured was unable to work through sickness or injury. This is different to public liability insurance, which is about damage caused to people not working for or at the direction of you or your organization. Professional Indemnity InsuranceProfessional indemnity insurance covers individuals against claims for breach of "Professional Duty" arising out of any negligent act, error or omission committed or alleged to have been committed by the Insured in the conduct of the Insured's professional activities (their profession or "business"). Most commonly, professional indemnity insurance is about damage caused by your professional advice. Property InsuranceThis is similar to household property insurance and generally covers contents held within a property owned or occupied by an organisation and other cover for items such as fire, storm or accidental damage or theft. Public Liability InsurancePublic liability insurance is necessary for you or your organisation to protect itself against claims made for personal injury or property damage caused by you or the organization to another person. For example, it is likely to cover a person who enters your premises and slips due to a wet surface and sustains a serious head injury. Public liability insurance may also cover you for injuries caused by products you or your organization has sold or supplied to another person, including food. However, you can specifically purchase product liability insurance. The Protection of Volunteers (from liability) Act 2002 (WA) was given Royal Assent on 20 November 2002 and means that volunteers working for you or your organization will be covered by your public liability insurance. Previously, the question of whether volunteers were covered by various policies was very uncertain. Worker's CompensationIn almost all cases this is compulsory by law where you have paid employees. Policy checklist
Activities outside of the normActivities that you may wish to undertake outside of your normal operations may not be covered by your current insurance or may require an additional premium. For example, if you include fire or aerial work in a performance, when aerial work or fire is not an ordinary component of the type of work you normally perform. In this cases, it is prudent to advise your insurer of the proposed activities in order to identify what cover you have, what risks you may have to assume, or what costs you may have to meet before incurring the risk, rather than attempting to make a claim and finding out that you are not covered. For further informationAbout insurance issues for community groups, the insurance centre at
www.ourcommunity.com.au. |
|
Professional resources
Insurance |
|
Copyright 2007 Australian Dance Council—Ausdance Inc. Acknowledgements |