While it's not required by law, having public liability insurance is not something you want to easily dismiss. Public liability insurance protects your NFP organisation if someone claims your negligence has led to property damage or an injury. This can help cover the compensation or legal fees of paying out a third party, as well as any costs in the defence of these claims.
Negligence or unexpected mishaps won't always be in your control, even with strict safeguards in place. So it can be very helpful to have another safety net. This is particularly important if your organisation regularly engages with the public with events and serves food or drinks.
Public liability insurance isn't a perfect fit for every NFP. If your organisation has minimal contact with third parties or the public, it might make sense to go without it. For example, if your organisation operates entirely online, the risk of a claim might be too low to justify the cost of public liability premiums.
Depending on how your NFP operates, it's a good idea to consider various types of business insurance. Here are a few options:
Covers your organisation against claims related to injuries or damages to third parties during the course of your work, or while using your products or services.
Protects against claims of negligence related to the advice or services your organisation offers. This is crucial if your NFP provides healthcare or financial advice.
In most cases this will be compulsory if your NFP has paid employees. It covers expenses like wages and medical bills if an employee is injured at work.
Covers damage to your organisation's property, including equipment and facilities. If your organisation hosts many events or has high value inventory on site, this type of cover can be valuable.
You can purchase business insurance directly from insurance providers or brokers who specialise in finding insurance for non-for-profit organisations. Buying through a broker can give you access to tailored packages as well as professional advice. This can be really helpful if your NFP has complex operations and needs a policy that is tailored.
Some examples of providers that offer business insurance specifically for NFP organisations include GIO, NRMA, and Unicorn Risk Services.
While the government won't come after you, not having public liability insurance exposes your organisation to significant risk. If a claim is made against you – like a slip and fall incident during an event – your organisation could be liable for hefty legal fees and compensation costs.
Imar offers legal liabilty cover of up to $20 million and a host of different insurances you can shape to the needs of your business – even if it’s a business of one.
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