How Professional Indemnity Insurance can help to cover your organisation

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Making a Difference

Not for Profit Organisations include some of the country’s most hardworking and groundbreaking Charities, Historical Societies, National Trusts and Healthcare groups. These NPOs make huge differences on a daily basis to millions of people’s lives across the country and internationally.

However, NPOs delivering health and care services or even those simply providing advice are particularly liable to allegations. It is absolutely essential therefore that the organisations protect themselves as well as their dedicated staff and volunteers by getting a professional indemnity insurance quote and taking out a comprehensive policy.

Just Trying to Help

Churches, Cancer Councils, The Samaritans; these are just a small example of some of the groups that may require Professional Indemnity Insurance.

Sadly, whilst the best intentions can be had, it is simply within the nature of delivering a service (such as giving advice or tending to an ill or immobile person) that errors or perceived negligence can occur. Even with the most efficient risk management, accidents can happen and it’s always best to be prepared.

Which Insurance is right for you?

Firstly, it is helpful to check whether you are already covered by any type of blanket government insurance scheme, or one from a funding body. If a group receives funding from a state government department, they are sometimes already covered – either fully or partially.

If you are not covered by a wider body, you will need to purchase Professional Indemnity Insurance. This type of insurance covers individuals against any claim for a breach of “professional duty” – which could be seen as anything from a negligent act, error or omission alleged to have been committed whilst conducting professional activities.

You may also want to double check your insurance coverage for other elements of your organisation such as whether you are fully protected for events such as fundraising concerts or dinners.

Professional Indemnity Insurance Australia

Money Talks

Imagine the situation; yourself, or a member of your organisation has a consultation with a disabled patient to advise them on how to get around their home easier.

Following this, amendments to the house are made. Two weeks later the patient falls over.

Despite the fact this may have occurred anyway, the patient may still want to claim that they were ill advised and put the blame for the fall on the advice received from your organisation. If they proceeded with such a claim, this could result in anything from a small (but time consuming) court attendance, to a multi million dollar law suit.

The majority of legal proceedings will be financially damaging and without insurance you could be forced to close. Similarly, if funds are tight and equipment that you may need is expensive and specialised, it is important that you’re protected further against incidents such as Burglaries and Thefts.

Get Insured for Peace of Mind

It’s important to realise that Insurance should never be seen as an alternative to Risk Management – NPOs should always aim for the highest levels of caution and safety measures.

However, being covered with professional indemnity insurance helps to provide financial and psychological security, enabling these types of organisations to focus on doing invaluable work. If you’re struggling to come to grips with what is required, this useful resource should help: acay.com.au

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Do Not-For-Profit Organisations Need Protection?

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Non-profit or not-for-profit organisations often provide services by organising training programs for sporting activities, mentorship programs, and several other types of programs through volunteers. In addition, they always operate on a shoestring budget.

non-profit

As they work in close association with the public as well as volunteers, not-for-profit organisations face some risks and unexpected financial losses can have a devastating impact on the organisation’s bottom line, assets and even their survival. Therefore, not-for-profit organisations also need insurance coverage, just as it is required for for-profit organisations, to manage the risks involved.

Further, insurance coverage provides protection to volunteers against liability under state as well as federal laws. This article provides some information about the types of insurance that non-profits must consider as part of their business insurance plan.

Commercial General Liability Insurance

General liability insurance or commercial general liability insurance, as it is sometimes referred to, protects the organisation against the compensation that has to be paid to a person who sustains an injury within its property or damaged caused to a thing.

It is an essential coverage and the only thing to be decided is the amount of to be obtained. A general liability policy often provides both defence as well as indemnity in the event of a judgment going against the organisation.

Typically, venues and event organisers insist on this insurance. If a non-profit organisation rents a pavilion, uses a ball field for holding annual conferences, rents office space and does several other activities, then it is important to have general liability insurance.

Property Insurance

Irrespective of whether the not-for-profit organisations own or rent the space occupied by them, they can lose a lot of things in the event of an earthquake, fire, storm vandalism, or other such events.

Property insurance provides protection against such risks, by covering not only the building, but also the fixtures, equipment and machinery, office furniture, computers and accessories and inventory and supplies.

Car Insurance

If the staff members or volunteers of the not-for-profit organisation use vehicles (even if it is their own) for carrying out its activities, then it is important to have auto liability insurance.

Some states may require non-profits to buy a minimum amount of coverage. This insurance pays for injuries that a driver may cause to others or damages caused to a property.

Product Liability Insurance

If the non-profit’s activities include selling of products and raising funds, purchasing product liability insurance will be of great help.

It will provide protection to the organisation against lawsuits filed by customers claiming damages for unsafe/defective products supplied.

Directors/Officers Insurance

Directors’ and officers’ insurance covers the cost of defending directors and officers of the non-profit organisation and damages to be paid if they are named in lawsuit against the organisation, alleging financial mismanagement or fraud.

Professional Liability Insurance

Professional liability coverage provides protection against liabilities resulting out of mismanagement of the organisation and workplace-related claims like discrimination, sexual harassment, etc. It provides coverage not only to directors and officers, but also volunteers, staff and the organisation itself. More information can be found here: http://en.wikipedia.org/wiki/Indemnity

Not-for-profit organisations require the same coverage that other businesses need to have. However, it depends to a great extent on the type of activities that the non-profit involves in.

Sometimes, they may require additional coverage such as embezzlement or employee/volunteer theft coverage, workers’ compensation and health insurance, among many others.

For more information about Australian Not For Profit Organisations, head over to the Australian Charities and Not For Profit Commission website.