When you give your time and energy to a club, you want to make certain you’re not risking your personal or the organisation’s financial security. Therefore, a management liability insurance policy can help provide protection for you and the organisation in the event of legal action if sued for:
- Negligence, libel, slander, defamation, discrimination, etc
- Employment related matters (unfair dismissal)
- Club management liability can also cover some of the costs associated with an employee stealing funds from the club.
A management liability policy typically has important exclusions that you should be aware of including but not limited to:
- Fraud – any claim in consequence of a deliberate fraudulent act
- Insolvency – financial impairment of the insured organisation
- Known dishonesty
- Losses sustained from accounts at banks where only one signatory is required for transactions.
Management liability insurance is ONLY available to incorporated entities. If your club is not incorporated, individual committee members may run the risk of exposing their personal home, car and financial assets.