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Insuring Your Association

Alan Hardaker
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General Advice Warning

This information may be regarded as general advice. That is, your personal
objectives, needs or financial situations were not taken into account when
preparing this information.

Accordingly, you should consider the appropriateness of any general advice

we have given you, having regard to your own objectives, financial situation
and needs before acting on it. Where the information relates to a particular
financial product, you should obtain and consider the relevant product
disclosure statement before making any decision to purchase that financial
product.
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Introduction
• Identification and treatment of risk.
• Legislation and the law.
• Liability Insurance.
• Association Liability Insurance.
• Voluntary Workers Insurance.
• Property Insurance.
• Personal Insurance.
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Identification and treatment of risk

• Let’s talk about risk. (Am I covered?)

• Risk management.
• Risk tolerance.
• Risk treatment.
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Legislation and the law

• Statutory obligations.
• Tort reforms.
• Civil Liability Act 2003.
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Liability Insurance

How does it work?

The operative clause … “the Insurer will indemnify the Insured
against the legal liability of the Insured to pay compensation in
respect of:
• Injury to any person
• Property Damage
occurring within the geographical limits during the period of
insurance as a result of an occurrence happening in connection
with the Insured’s business.”
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Liability Insurance (continued)

What is excluded.
• Advertising liability
• Aggravated, Punitive or Exemplary Damages.
• Aircraft and Watercraft.
• Asbestos.
• Contractual Liability.
• Electronic Data.
• Employers’ Liability.
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Liability Insurance (continued)

What is excluded.
• Fines, Penalties and/or Liquidated Damages.
• Industrial Awards.
• Loss of use.
• Pollution.
• Professional Liability.
• Terrorism.
• Vehicles.
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Duty of disclosure

If you do not tell the Insurer …

Under section 21A of the Insurance Contacts Act 1984, you are obliged
to disclose exceptional circumstances which are either known to you or a
reasonable person in the circumstances would be expected to know
would be relevant to the Insurance company's decision whether or not to
accept the risk and if so on what terms.

Failure to comply with the duty of disclosure may result in the cancellation
of your Insurance contract or the denial of your claim.
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Association Liability Insurance

This policy is a combination of:

• Professional Indemnity
• Office Bearers
• Entity Insurance
• Employment Practices
• Fidelity
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Association Liability Insurance

Professional Indemnity.
This section of the Policy provides protection
to the Association, office bearer and
employees, for claims that arise from any
advice they give to third parties and members.
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Association Liability Insurance

Office Bearers.
This section of the Policy provides personal
protection to all office bearers for claims that
arise from wrongful acts, committed whilst
representing their Association.
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Association Liability Insurance

Entity Insurance.
This section of the Policy provides protection
to the Association itself for claims not covered
under other sections of the Policy. This is a
key area of coverage for all Associations.
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Association Liability Insurance

Employment Practices.
This section of the Policy provides protection
to the Association for any legal liability to pay
from claims arising from Employment
Practices. The cover is subject to various
conditions.
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Association Liability Insurance

Fidelity.
This section of the Policy provides protection
to the Association for loss of money due to
dishonesty of an office bearer in the conduct
of the Association’s professional duty.
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Voluntary Workers

• A moral obligation to insure.

• Provides capital benefits.
• Provides income benefits.
• Medicare and other legislation.
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Property Insurance

• Material Damage.
• Burglary and theft.
• Property in transit.
• Excesses and self retention.
• Income and revenue.
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Personal Insurance

• A moral obligation to insure.

• Personal Liability.
• Income Insurance.
• Death, disability and trauma.
• Private health insurance.
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Questions