You know how many moving parts there are when you have ever assisted in the management of a community event. One person is putting in place tables, the other one is putting in place volunteers, and there is always the last-minute rush that comes right before the commencement of things.
Now imagine this. One of the visitors stumbles on a loose cable and suffers an injury. Or some equipment drops down and ruins the property of one person. Such happenings are not frequent, but when they do, they are likely to change into something serious very fast.
This is where the public liability insurance for not for profit comes. And in the case of the not-for-profit groups, it is one of those types of covers that work a lot of heavy lifting behind the scenes.
It is Not about Living in the Fear of the Worst.
Risk does not necessarily occur to most charities and community organisations as it does in businesses. People tend to be concentrated on assisting individuals, not on the potential failure.
However, the truth is straightforward – once you deal with the people, it is always somewhat of a responsibility.
You may be conducting a weekend fundraiser, a food drive, a workshop, or you may be simply opening your doors to visitors. As long as the second person enters that space, your organisation owes the duty of care.
The public liability insurance is present in times when something does go awry.
The Things that People Miss in their Everyday Life.
Many individuals believe that insurance coverage is applicable only to big-time accidents. The reality is that sometimes it is the minor things that result in claims.
- A child slips on a wet floor.
- One of the volunteers spills costly equipment by accident.
- One of the signboards blows off in the wind and ruins a parked vehicle.
None of these is dramatic. Every one of them may result in a complaint or a compensation claim.
And when that happens, it is not only about solving the problem. Legal expenses, health expenses, and time wasted in attending to the situation could be involved, and all these may prove to be expensive very fast.
In the case of a not-for-profit, it can be a strain.
The reason why this is even more important to the Not-for-Profits. People have a widespread perception that a charity is somehow less risky. On the contrary, it may happen to be the reverse.
Not-for-profits often:
- Trust to volunteers of various degrees of experience.
- Conduct short-term or temporary events.
- Use shared or public spaces
- Operate on tight budgets
All this brings an environment where minor errors are more instrumental.
And, in contrast to bigger organisations, there is no financial buffer in the vast majority of cases to take up the unforeseen expenses.
This is why public liability insurance is not a nice-to-have thing, but a must-have item for various groups.
It also guards your Reputation.
The reputational aspect of things is one of the things that people do not discuss adequately. It is not all about money when one is hurt or his/her property is damaged. It may influence the reputation of your organisation in society. It makes a lot of difference to act out the situation correctly in haste and impartially. Insurance helps you do that.
You are not alone in trying to figure out what to do; you have someone to support you. The claims may be dealt with in an organised manner and the victim is taken care of.
That will go a long way to retain trust.
The not-for-profit is run by people who volunteer their time and energy behind it. They are volunteers, committee members, organisers, they are the ones who make it all happen.
The final thing they need is worry about what follows in case something goes wrong.
The right cover will change that. It develops a feeling of confidence. Individuals are able to concentrate on the work and not question each decision.
And in most instances, it also convinces partners, venues and local councils who might insist on insurance certificates before letting events proceed.
A Practical Way to Look at It
Public liability insurance does not require a lot of twists. In case any person gets hurt or their property is ruined due to the activities that your organisation is engaged in, you are insured.
That’s it.
The trick is to ensure that the level of cover is at par with what you are actually doing. A local organisation with a relatively small group will not require the same set up with a big organisation with frequent events to the public.
It is about having the right fit without too much or too little.
The majority of not-for-profits cannot afford to have the luxury of idle cash reserves to deal with unforeseen issues. Any dollar generally has a reason.
Public liability insurance can be used to cover those funds. It ensures the fact that a single occurrence does not reverse months/years of positive efforts.
You hope you never need it. However, when you do, it may be what prevents a manageable situation and a big loss.
ACS Financial will partner with the not-for-profits in Australia to secure the right public liability cover, which is relatively simple when the organisations require straightforward advice, as compared to complex advice. Their strategy is not complex and is practical enough to allow community groups to remain secure and concentrate on the tasks that are of utmost importance. You will be able to see more information here.
