Association liability insurance protects not-for-profit organisations, and the people who govern them, against claims arising from how the organisation is run. It is the counterpart to directors and officers cover in the association, club, society, charity, and management committee context. The individuals who serve on a committee carry real responsibility, and often real personal exposure. We structure association liability cover around the way your organisation is constituted and governed.
What association liability insurance covers
Association liability insurance responds to claims made against the organisation and against its committee members, office bearers, employees, and volunteers, alleging a wrongful act in the governance or administration of the organisation. It meets the cost of defending such a claim and, where liability is established, the resulting damages or settlement, up to the limit of the policy. The cover is often arranged as a single management liability programme, so that the organisation and the individuals who run it are protected together.
The responsibility office bearers carry
Those who govern a not-for-profit owe duties to the organisation. Board and committee members of a charity owe fiduciary duties of care, of loyalty to the organisation's interests, and of obedience to its objects and to the law, and under the Charities Act the governing board must keep proper accounting records. The structure of the organisation affects how exposed its officers are: a society registered with the Registry of Societies has no separate legal personality, which means its office bearers can be held personally liable for the society's obligations.
The Charity Council's Code of Governance for Charities and Institutions of a Public Character recommends that organisations arrange appropriate insurance for their board members, staff, and volunteers. The cover is not mandatory, but the exposure it addresses is real: a claim alleging mismanagement, breach of duty, or misuse of funds can lead to costly litigation regardless of whether it ultimately succeeds.
Who should consider it
Any organisation run by a committee or board carries this exposure: registered societies, clubs, trade and professional associations, charities, and management committees of all sizes. The exposure does not depend on the size of the organisation's funds. Because liability can attach to individuals, and because some structures offer office bearers no separate legal protection, volunteers who serve in good faith can find their personal position exposed by a claim against the organisation.
Where the exposure sits
The common gaps are who is covered, and for what. Cover that protects the organisation but not its individual committee members, or that excludes volunteers, can leave the people most exposed without protection. A limit set without regard to the cost of defending a regulatory enquiry or a member dispute can be exhausted before the matter is resolved. Reviewing who is named as insured, whether volunteers and past officers are included, and whether the limit reflects the organisation's activities is where the value of the cover is decided.
How we structure it
We take time to understand how your organisation is constituted, who serves on its committee, and the activities it carries out, and we place cover with our appointed insurers around what we find. We review the cover as your committee changes and your activities grow, and we remain your point of contact if a claim is made. The aim is cover that protects both the organisation and the people who give their time to run it.