Insurance

Modified on Wed, 27 Nov at 5:04 PM

Overview

Disclaimer: The information provided is general information only, please contact your insurer regarding your own needs and policies.

When considering insurance needs, it is always recommended that you seek professional advice to determine the type of cover you require.

It is also important to review your policies regularly and inform your insurance broker of any new or unusual activities your organisation or your volunteers are participating in to ensure appropriate insurance coverage. Examples of such variations include, but are not limited to, volunteers working:

In a different location.
In a new role.
From home or a remote location.
With different equipment.
With a different client group.
In a new program area.
In large numbers - such as a big event

If your insurance policy has age limitations, you should also contact your insurance broker if you wish to engage volunteers under the minimum stated age, or if volunteers reach your maximum age and you wish them to continue volunteering with your organisation.

In the event of an insurable incident, you should inform your insurance provider as soon as possible.

Risk Management

Risk management is a process used to identify the extent and nature of the risks involved in the activities carried out by an organisation. It helps you assess your organisation’s activities, develop policies and procedures to mitigate risk, and reduce the likelihood or seriousness of a hazardous incident occurring.

While the process will identify the types of insurance coverage your organisation may need, insurable events are best avoided wherever possible. In addition to an insurance claim, consequences to be avoided by effective risk management include harm to a person, damage to property, your organisation’s ongoing viability being compromised and failure to meet your legislative obligations such as those outlined in:

Types of Insurance

Whilst you will need to speak to your insurance broker to identify the appropriate cover for your volunteer program, the following are some of the insurances that may be considered:

Volunteer Workers Personal Accident Insurance

Personal Accident Cover for volunteers (which is like compulsory work cover for paid employees) covers volunteers for certain out-of-pocket expenses following accidental injury, disability or death while carrying out their work on behalf of the organisation.

Depending on the policy, this type of insurance should normally cover loss of income. It is important to remember that this cover is rarely included in Public Liability Insurance, and therefore a separate policy needs to be taken out with the insurance broker or underwriter. Personal Accident Insurance is usually reasonably priced and easy to obtain. It is important to be aware of any age limit or any activities that might be excluded from this insurance cover. There is usually a $50 to $100 excess for non-Medicare medical expenses. These details are spelt out in the policy wording. Students or work-placements may not be included in this insurance policy. It is therefore important to check the policy before engaging students or work-placements.

Public Liability Insurance

This insurance covers the organisation’s legal liability to pay damages to a third party (e.g., member of the public or clients of the organisation) for personal injury or property damage accidentally caused by a member of the organisation including its volunteers.

A separate or extended cover can be chosen to include legal costs in relation to a claim being made against the organisation. Some insurance brokers will include Product Liability as an extension of their Public Liability Policy.

Directors & Officers Liability Insurance

This insurance is specifically designed to indemnify committee members and office bearers for loss, including legal costs where they have been proven to be negligent while performing their role in the organisation.

It is important to be familiar with and understand the wording of this policy, particularly the extent of cover and specific exclusions under the policy.

Motor Vehicle Comprehensive Insurance

This insurance covers vehicles owned and driven by volunteers or paid staff for loss or damage to the vehicle or third-party property.

It is important for your organisation to have a motor vehicle policy (in addition to insurance) if volunteers or paid staff are using their own motor vehicle or the organisation’s vehicle in the course of their work requirements. It is advisable for volunteers to inform their motor vehicle insurer if they are using their own vehicle in the course of their voluntary work.

If you have agency vehicles, it is important to check whether your insurance policy has any age or license restrictions for paid or volunteer staff use. For example, some policies may exclude or have an excess for drivers under the age of 25 or who are on their Probationary license.

Property & Contents Insurance

This insurance includes damage or theft to the organisation’s property or contents. It is like Household Contents Insurance. This does not usually cover a volunteer or paid staff member’s personal belongings unless explicitly negotiated.

Cyber Security

This is a new and growing area of risk for all organisations, especially in relation to strengthened privacy and data protection responsibilities to organisations under the Notifiable Data Breaches amendment to The Privacy Act 1988, which commenced on 22 February 2018. The issue of cyber security becomes particularly important given the possibilities for remote and virtual volunteering.

Other types of insurance for organisations to consider are Product Liability and Event Insurance.

Insurance can be a very daunting process for many Volunteer Involving Organisations, but it is also extremely important.

Additional Resources

Attached below are a variety of general resources produced by AON Insurance and Volunteering Australia to provide more information on the importance of insurance and help develop a better understanding of how insurance works, as well as some helpful information on ensuring your organisation remains safe.

AON - Not for Profits Virtual Volunteering Article

AON - Cyber Flyer: The Reality of Risk

AON - Insurance Puzzle Helper

AON - Additional Pieces to Your Insurance Puzzle Helper

Volunteering Australia - Event Risk Management and Checklist

Volunteering Australia - Charity Fundraising Mistakes