INSURANCE
INTRODUCTION
FREQUENTLY ASKED QUESTIONS
FURTHER INFORMATION
CONTACT VOLUNTEERING QUEENSLAND
INTRODUCTION
Volunteering Queensland (VQ) is committed to the view "it is fundamental to the proper operation of a community organisation that appropriate protective structures be implemented both for the organisation itself and any volunteers it may engage to do work".
One of the most appropriate risk management strategies a community organisation should implement is the acquisition of Insurance. Depending on the circumstances of each community organisation, insurance may include all or any of the following:
- Volunteer Workers Personal Accident Insurance
- Public Liability Insurance
- Directors & Officers Liability Insurance
- Professional Indemnity Insurance
- Motor Vehicle Comprehensive Insurance
- Property & Contents Insurance
>FREQUENTLY ASKED QUESTIONS
Who is responsible for arranging insurance?
It is a community organization’s responsibility to arrange insurance both in relation to its own operations (or risks) and for volunteers and members of management committees.
What is the best way for a community organization to arrange insurance?
A community organization should obtain professional advice to find out what insurance is available and what are the most appropriate covers for the needs of the organization. To this end an insurance broker should be used. The broker will act on behalf of the organization and negotiate the best policy terms and premiums from the insurance market.
What types of insurance should a community organization consider?
- Volunteer Workers Personal Accident Insurance
Personal Accident Cover for volunteers (which is similar to the State Government’s compulsory Workcover for paid employees) covers volunteers for 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 a separate policy needs to be taken out with the insurance broker or underwriter. Personal Accident Insurance is not excessively expensive and usually not difficult 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-$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 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 (eg. 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 taken out 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. Some activities undertaken by volunteers are also commonly covered by household insurance policies. For more information about this type of cover go to: https://olt.qut.edu.au/bus/DYO/index.cfm?fa=displayPage&rNum=1777665&pType=curr#1
- Directors and 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, in the course of performing their role for the organisation. It is important to be familiar and understand the wording of this policy, particularly the extent of cover and specific exclusions under the policy.
- Professional Indemnity Insurance
Brokers and insurance companies can combine Professional Indemnity and Directors and Officers Liability insurance into one policy. Professional Indemnity Insurance is expensive and may not be necessary for all organisations. It is important to seek professional advice before taking out this insurance cover. This cover can be designed to compensate organisations for loss incurred through a claim made against the organisation for breach of professional duty or advice arising from negligence, error, omission, defamation, loss of records or documents, dishonest acts etc. by volunteers (including management committee members) and paid staff. It is important to be familiar with and understand the wording of this policy as it often has a number of inclusions and exclusions.
- Motor Vehicle Comprehensive Insurance
This insurance covers vehicles owned by volunteers or paid staff for loss or damage to the vehicle or third party property. It is important for the vehicle’s owner to have a motor vehicle policy if they are using their own motor vehicle in the course of their work requirements. It is advisable that they also inform their motor vehicle insurer, if they are using their own vehicle in the course of their work. Organisations would carry a similar insurance cover for vehicles owned by the organisation.
- Property and Contents Insurance
This insurance includes damage or theft to the organisation’s property or contents. It is similar to Household Contents Insurance. Other types of insurance for organisations to consider are Product Liability and Event insurance.
For More Information
For more information about risk management and insurance covers and their content, visit VQ's website at www.volqld.org.au or contact VQ's Finance and Executive Services Manager, Perry Hembury on 07 3002 7600 Extension 205.
For more detailed information or quotes for any of the above insurance covers, contact the insurance brokers listed below. In relation to public liability cover, Suncorp (Link to: http://www.suncorp.com.au/suncorp/insurance.html) offer a free risk management planning tool called 'My Risk Evaluator' (Link to: http://www.myriskevaluator.com.au/login/) in addition to a 10% discount off the annual premium with a premium cap for two years (under certain conditions) for customers who use an AS/NZS 4360:2004 compliant risk management product - for their Public and Products Liability policy.
Will a community organization need to have a risk management plan in order to acquire insurance?
Most insurers will ask for brief details of an organization's risk management (LINK TO RISK MANAGEMENT CHAPTER) plan and some will require evidence of its existence. This question is usually included in an insurer's application or renewal of insurance form. However, regardless of what an insurer may require to obtain insurance, a proper risk management strategy must be a fundamental part of the operations of a community organization.
Is it necessary for a community organization to hold insurance to be admitted as a member of Volunteering Queensland Inc.?
For a community organization to be admitted as a member of Volunteering Queensland, the organization must agree in writing (by way of an Agreement) to acquire and maintain both Public Liability Insurance and Volunteer Workers Personal Accident Insurance.
Are there any laws requiring a community organization to obtain insurance?
Organisations incorporated under the Queensland Associations Incorporation Act 1981 need to be aware that this Act has been amended, effective 15 June 2007. One of the changes relates to public liability insurance – which remains a requirement, for associations that own land, lease land or hold land in trust. The change allows the management committee to determine the level of insurance coverage required. There are other requirements, including a necessity for the management committee to advise its members of decisions made about this matter. For detailed information contact the Queensland Government’s Office of Fair Trading, which has a number of useful Fact Sheets available.
Apart from the above compliance requirements, associations should fully consider:
- their general risk management needs
- what other legislation they may be subject to
- what legal contracts (such as funding service agreements) might apply
- what clauses exist in their own constitution
- that some other businesses may not want to do business with you if you don’t have a public liability cover. For example, hiring halls, setting up stands in shopping centres
- that if they are a Registered Training Organisation, separate regulations
might apply
What other issues should a community organization consider when arranging insurance?
- Public Liability
• Does the liability policy include the actions of both paid and volunteer workers?
• Will volunteers be permitted to use their own cars when their work involves transporting others or carrying out any other volunteer work for the organisation? - Personal Accident
• What is the age range cover for volunteers? Is a minimum and/or maximum age specified? Are the age limits different for workers with disabilities? Is this acceptable? A good policy does not have age limits for volunteers.
• What cover should be included following injury or death, e.g. medical/funeral expenses, home help, home modifications, weekly benefits, rehabilitation costs?
• What level of cover for loss of income if injured while volunteering?
• What level of cover for personal accident?
• Does cover include expenses incurred as a result of stress?
• Will volunteers be covered during their journey to and from work? In what way?
• Are exclusions and excesses involved? What is the gap between public medical benefits and the insurance claim?
Motor Vehicle
• Will loss of no claim bonus and cost of ‘excess’ on personal car insurance be paid in the event of damage to the volunteer’s car?
• Will allowance be made for loss or damage to the volunteer’s personal property?Public Liability/Personal Accident
• Is the risk involved in the work so high that volunteer involvement should be reconsidered or the extent of cover increased?
• What records does the insurer require you to keep?
• Does the policy require a risk management plan?
• Will the premium be calculated by the number of volunteers and/or the hours of involvement as well as the level of risk involved in the activity?
FURTHER INFORMATION
SPECIALIST ADVICE – BROKERS/GROUP SCHEMES
IC Frith & Associates
Ph: 07 32118066
Fax: 07 32118033
Email: frithqld@icfrith.com.au
Community Learning Insurance Queensland
Lifelong Learning Council of Queensland (LLCQ) - Group Cover
Contact: Helen Schwencke
Ph: 07 38448400
Brokers: Fairweather Turner Pty Ltd
Email: insurance@LLCQ.org
www.ftllcq.net
Aon Risk Services
Volunteers ‘Vital’ Pack
Ph: 1800 806 584 (toll free)
Ph: 02 92537000
LINKS TO AVAILABLE RESOURCES
www.ourcommunity.com.au/insurance
www.volunteeringaustralia.org
www.volqld.org.au
http://www.treasury.qld.gov.au/subsites/groupinsurance/
(links to Aon Risk Services site)
www.icfrith.com.au/html/contact.cfm
www.aon.com.au
www.workcoverqld.com.au
www.llcq.org (membership
& services info – group insurance for training, educational
organisations)
CONTACT VOLUNTEERING QUEENSLAND
For more information contact:
Perry Hembury
VQ Manager - Finance & Executive Services
Phone: 07 30027600
Fax: 07 32292392
Email: admin@volqld.org.au