Incorporated associations have a duty of care to ensure the activities of the association do not cause harm, damage or injury to any participant or recipient of services, or any other person who is reasonably likely to be affected. If an injury is a foreseeable result of the association failing to exercise reasonable care in providing these services, then the association will be liable for any loss or damage suffered.

Management committees should ensure the standard of care provided by the association is reasonable in order to minimise the risk of liability. The committee should identify and evaluate the risks for all activities and where there is a likelihood of harm or a greater risk of harm, a higher degree of care is required. For example a higher degree of care and supervision is required for young children taking part in physical games than for children sitting listening to stories being read.