Public liability insurance |
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Public liability insurance protects your association if a person is injured, or their property is damaged, due to an incident on the association’s property or the association’s actions.
Public liability insurance is compulsory if the association owns or leases land, or holds land in trust.
Your association’s management committee must assess the association’s situation and decide how much insurance it needs, if any.
Committee obligations
Management committees are legally required to:
- review insurance requirements each year and report the results at the annual general meeting
- tell members the risks if the management committee decides not to take out public liability insurance
- tell people applying to be members, and nominees for election to the management committee, whether the association has public liability insurance and how much coverage
- tell any person or entity who the association deals with if it does not have public liability insurance.
Risks
If an association decides not to take out adequate public liability insurance, it needs to be aware of the risks, including that:
- businesses may refuse to deal with the association
- the association’s assets may be at risk if someone makes a claim.
While the Associations Incorporation Act 1981 gives some protection to an association’s members for liability, this protection may not be absolute.
For example, if the association is found to be negligent in its actions, a court may find the association liable.
Seek professional advice about your association’s individual situation and needs.
Last reviewed 01/09/2009 |
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