Association Liability

Association Liability

Cover for legal liability and costs exposures related to your management of non-corporate organisations including professional, charitable, non-profit, trade, social or sporting organisations.  There is also cover for a number of the Association’s legal liabilities and related cost exposures.

Please note that some covers under this policy operate on a ‘claims made and notified’ basis.  In broad term this means that cover is provided when a claim is made and notified within the period of insurance regardless of when the circumstances giving rise to the claim originally occurred.    For there to be cover it is also necessary for there to be continuous cover from the date when the circumstances giving rise to the claim occurred.

Please also note that, when it is necessary to obtain our prior consent before incurring costs, we will only refuse when it is reasonable for us to do so. 

The FMG Association Liability policy automatically includes these covers:

What Liability Insured Persons Are Insured For

Covers your liability arising from the provision of professional advice or services, in the course of the Association’s professional activities including producing any industry documents or standards, coaching or training. 

Covers your liability for the management of the Association as office holder including acting in the capacity as a director, trustee, committee member, secretary, employee or volunteer.  

Covers your liability in connection with your management of a non-profit organisation at the Association’s written request.  

Cover for your emergency defence costs when it not reasonably possible to obtain our consent before incurring them.  This cover is subject to a repayment obligation.

Cover, with our prior written consent, for defence costs incurred when you are required to attend an official investigation, examination, inquiry or other proceedings commissioned by any official body or institution that involves an allegation you breached health and safety laws (including proceedings alleging involuntary manslaughter or gross negligence manslaughter).

Cover, with our prior consent, for costs incurred if you receive a notice from a regulatory authority about a possible investigation in respect of any claim covered under the Officer Bearers, Outside Directorships or Individuals’ Employment Practices Claims covers.

Cover, with our prior written consent, for your defence costs arising from a loss or inadvertent disclosure of data, breach of privacy or confidentiality caused by a cyber-breach in respect of any claim covered under the Office Bearers, Outside Directorships or Individuals’ Employment Practices Claims covers.

Prior to the judgment of any covered loss, we will pay defence costs and legal representative expenses incurred by you in respect of any possible claim.    This cover is subject to a repayment obligation.

Cover, with our prior written consent, for the professional fees you incur in the defence of any tax investigation into your tax affairs.  

Cover for your civil liability resulting from unintentional breaches of the Consumer Guarantees Act 1993 or Fair Trading Act 1986.

Cover, within New Zealand and Australia, for unintentional or accidental loss or damage to documents including electronic documents.

Cover for your liability when you make an unintentional defamatory statement in connection with the Association’s business.

Covers your liability for any unintentional breach or infringement of privacy, use of confidential information or intellectual property rights in the course of the Association’s business.

Cover for you for employment practices claims including ones involving discrimination, wrongful dismissal, workplace harassment, breach of employment contracts, wrongful demotion or failure to promote.

What Liability the Association is Insured For

Covers the Association for losses arising from the provision of professional advice or services in the course of its professional activities including producing any industry documents or standards, coaching or training.

Covers the Association for claims arising from wrongful acts of officers (including directors, trustees, secretaries, committee members, employees or volunteers) not covered under the Office Bearers or Outside Directorships covers in the What Liability Insured Persons Are Insured For section above.

Reimbursement cover for individuals liability for wrongful acts that the Association is legally obliged to indemnify them for.

Association cover for employment practices claims including ones involving discrimination, wrongful dismissal, workplace harassment, breach of employment contracts, wrongful demotion or failure to promote.

Cover, with our prior written consent, for the Association’s public relations costs in the event there is a coverable claim under the Association Reimbursement or Employment Practices Claims covers resulting in a significant reputational issue.

Cover for expenses incurred by the Association when a covered individual is required to attend legal proceedings in defence of a claim covered under the Employment Practices Claims, Association Reimbursement or Crisis Management Costs covers.

Cover, with our prior written consent, for the Association’s defence costs arising from a loss or inadvertent disclosure of data, confidential information or breach of privacy caused by a cyber-breach in respect of any claim covered under the Association Reimbursement or Association Employment Practices Claims covers.   There is also cover for an Association’s liability due to the transmission of a computer virus.

Cover for the Association’s emergency defence costs in the event that it is not reasonably possible to obtain our consent before these are incurred.  This cover is subject to a repayment obligation.

Cover for the Association’s defence costs incurred when there is a claim covered under the Office Bearers and Outside Directorships covers involving an actual or alleged breach of a contract by the Association.

Cover, with our prior consent, for the costs incurred by the Company to establish that a third party has fraudulently represented themselves as the Company in entering an agreement and the other party to that agreement seeks to enforce it.

Cover, with our prior written consent, for professional fees incurred in defending any investigation into the Association’s tax affairs.  

Cover for defence costs incurred by the Association in respect of a claim covered under the Office Bearers and Outside Directorships covers involving  a pollution event including the actual, alleged, or threatened discharge or escape of oil, smoke, asbestos, fumes, nuclear or radioactive materials, chemicals and waste.

Cover for the Association’s civil liability resulting from an unintentional breach of the Consumer Guarantees Act 1993 or Fair Trading Act 1986.

Cover, within New Zealand and Australia, for unintentional or accidental loss or damage to documents including electronic documents.

Covers the Association’s liability resulting from the making of an unintentional defamatory statement in connection with its business.

Covers the Association for any unintentional breach or infringement of privacy, use of confidential information or intellectual property rights in the course of its business.

Cover, with our prior consent, for loss to the Association due to employee fraud, crime by a third party, electronic and computer crime, and crime related to the destruction, damage or loss of money or negotiable instruments.

Cover, with our prior consent, for legal fees incurred by the Association in the defence of any proceeding brought by third parties as a result of a crime loss.

Cover, with our prior consent, for specialist fees incurred by the Association to investigate, report on or prove a covered or potentially covered crime loss.

Optional extras

There are options to extend the discovery period (the period when you can notify us about a claim beyond the period of insurance) if this policy is not renewed or an alternative policy is not put in place.  This includes a 30 day complimentary discovery period if there is no merger or acquisition, or, for additional premium, a longer discovery period (either 12 or 24 months).

 

When the policy is not renewed or replaced, there is the option to have the discovery period extended for 36 months if you retire prior to the period of insurance ending and any merger or acquisition. 

In the event that there is a merger, acquisition or the Association ceases to exist, you can opt for cover from that date until the period of insurance ends in respect of conduct prior to that merger, acquisition or cessation.

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