An association should consider the cost of any non-compulsory insurance against the risks covered by that insurance in the context of the activities carried out by the association. The committee may wish to engage a qualified broker to assist it to identify suitable insurance cover.  A review of the association’s activities and risks should be conducted on a regular basis to assess whether its existing insurance program provides appropriate cover.

Exclusions

Exclusions in insurance policies are those events, occurrences or types of damage or loss not covered by a policy. For example:

• workers' compensation and professional indemnity cover may not extend to volunteers;
• the loss of cash kept on premises may not be covered;
• items valued over a certain amount may not be covered; and
• the use of private cars for work purposes may not be covered under the owner's private car insurance.

Exclusions can vary between policies and an association should pay special attention to any exclusions when considering the type and extent of cover. 

Hints when considering insurance and risks

• Obtain professional advice and assistance from a qualified insurance broker.
• Investigate group insurance schemes, which may reduce premium costs.
• Regularly check insurance cover and policies to ensure that you are not under‑insured or over-insured.
• Consolidate policies where possible – packaged insurance may be more cost effective than individual cover.
• Undertake regular risk management to identify, assess and manage risks.
• Ensure that all office bearers, committee members, management and staff are aware of their legal responsibilities.
• Ensure that relevant policies and procedures concerning risks (e.g. professional standards and health and safety) are developed, implemented and maintained.