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Association Liability: Do I need it?
Liability Insurance
Not for Profits Insurance
Charities and Not-For-Profits Insurance
Associations Insurance
Association liability refers to the legal responsibility that an association, such as a corporation, non-profit organisation has for the actions or omissions of its officers, directors, employees, and volunteers.
Association liability is important for several reasons:
Protecting the association's assets: By holding the association liable for the actions of its members, the association's assets are protected from the consequences of potential misconduct, negligence, or errors by its members. This helps to ensure that the association can continue to operate effectively and fulfill its mission.
Encouraging responsible behaviour: By making the association liable for the actions of its members, it encourages the members to act responsibly and with due diligence in their actions and decision-making. Members are more likely to take care to follow best practices and legal requirements when they know that their actions can have consequences for the entire association.
Promoting transparency and accountability: Association liability promotes transparency and accountability by requiring associations to be more careful in their decision-making and to keep accurate records of their activities. This can help to build trust among stakeholders, including members, sponsors, and regulators.
Ensuring fairness: Association liability helps to ensure fairness by holding all members of the association to the same standard of conduct. This prevents individual members from engaging in behaviour that could harm the association or other members, without facing consequences for their actions.
Overall, association liability is an important legal concept that helps to protect the assets and reputation of associations, promote responsible behaviour and accountability, and ensure fairness among members.
If you’re seeking Association Liability reach out to your Qualified Practicing Insurance Broker (QPIB).
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Abbie Wilson, National Insurance Brokers, ABN 22165146789, AFSL 233750
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