Association Liability




Association Liability

Managing a Not-For-Profit organisation carries with it a significant element of liability risk to individuals. Board members and senior managers can be held personally liable for their actions or failure to act in certain circumstances.


Association Liability Insurance provides protection for the organisation as well as its Directors and Officers from a range of exposures relating to employment practices, fraud or fines and penalties. It also extends to protect against errors or omissions in the provision of advice and training.


The Association Act of 2009 introduced increased penalties for Director and Officers who breach their legal duties. Examples of such breaches are:

1.Conflict of interest

2.Misuse of knowledge gained on Board

3.Misuse of position on Board

4.Trading while insolvent

5.Complicit involvement


An Association Liability policy typically covers your legal defence costs as well as the compensation and legal costs incurred in response to allegations of ‘wrongful acts’ committed by a Not For Profit organisation, and/or its management.