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Do we really need insurance?

6 June 2003

The NSW Department of Fair Trading no longer requires an organisation to take out public liability insurance in order to become incorporated. Does this mean that arts councils and other organisations affiliated with Regional Arts NSW no longer need to take out insurance?

No, it does not.

As the NSW Department of Fair Trading advises on its website, "The removal of the requirement under the Regulation for associations to hold public liability insurance does not mean that associations are immune from public liability claims. The question of an association's potential liability and the appropriate insurance to be taken out is a matter for each association to
consider."

Regional Arts NSW has sought independent legal advice on the matter and, according to an opinion prepared by barrister Mr Mark Richmond, in the absence of a blanket exemption from civil liability for not-for-profit organisations, Regional Arts NSW and its affiliated organisations are still potentially exposed to damages claims for death and personal injury to members of the public caused by negligence. It is Mr Richmond's recommendation that we continue to be insured.

Regional Arts NSW is therefore continuing to effect public liability insurance in respect of its activities and we strongly advise our affiliated organisations to do the same.

Community groups will also find that local governments will still require organisations hiring venues to have public liability insurance, as will other government departments which award grants.

Regional Arts NSW will also require grant awardees to have public liability and personal accident insurance.

The good news is that Regional Arts NSW has managed to secure an affordable umbrella public liability insurance scheme for it affiliates for this year, under difficult circumstances. Facing premium increases from $20,000 to $165,000, and with the only other offer on the table being a premium of $410,000, we were once again facing massive premiums. Following my participation in an ABC radio interview on the insurance crisis with Phil Turner, Manager, Community Care Underwriting, Mr Turner contacted me and offered to look at the insurance needs of Regional arts NSW and our affiliates and to develop a policy accordingly.

CCU's assessment is based on the 2003 Insurance Survey supplied to RANSW by each organisation at the beginning of the year. A scale of premiums for different sized groups has been developed.

CCU is committed to providing affordable insurance for non-profit groups, and the company has gone to considerable trouble to develop the Regional Arts NSW umbrella public liability insurance scheme outside of its general policy. It has also agreed to undertake all administration associated with invoicing, issuing individual policies and collection of monies, removing a considerable financial and administrative burden from RANSW.

Cover has also been secured for Voluntary Person Accident Insurance with Finsura Financial Services for $70 per group.

A full copy of the Mark Richmond's letter can be obtained from RANSW on request.

Any enquiries should be directed to Kyrin Vea Vea, Business + Finance Manager Tel 02 9247 8577 ext 6 Email kyrin@regionalartsnsw.com.au.