News

Regional Arts NSW and the Public Liability Insurance Crisis

28 February 2002

For list of cancelled events click here

Since its formation in 1999, Regional Arts NSW (RANSW) has offered a 'blanket' public liability and volunteer worker insurance package to local arts councils and other affiliated not-for-profit arts and cultural groups across regional and rural NSW. Each year a policy has been negotiated through a broker so that an affordable service could be put in place in time for the start of the new year. The service has now been available in regional and rural New South Wales since it was first introduced by the Arts Council of NSW in the 1980s.

Regional Arts NSW is not funded to provide insurance cover as its core business, nor is it a requirement under our constitution, but we recognise the significant benefits to regional NSW communities of using our capacity to 'bulk' purchase and offer this critical service at an affordable cost. We see it as an important part of our commitment to the arts and cultural development - and to community life in general - in regional and rural NSW.

In October 2001, when RANSW commenced its yearly negotiations with brokers for public liability cover, the insurance climate was changing. In the wake of the HIH collapse and September 11, and facing soaring public liability costs, Regional Arts NSW broker, despite its best - and continuing - attempts, has been unable to obtain any public liability cover for the commencement of 2002.

As a result, affiliate groups are not currently covered under public liability insurance through RANSW. Many arts and cultural groups across the state have had to cancel or postpone any public arts or cultural activities planned for the first quarter of 2002 [see list].

Regional Arts NSW is very concerned about the impact of this situation on the cultural lives of rural and regional people in NSW. We are also keenly aware of the circumstances in which affiliate groups are currently placed. Unfortunately our ability to rectify the problem is limited by the volatile insurance market.

We are actively pursuing an affordable public liability insurance package for our affiliate groups. While we have nothing to announce at this stage, our broker is currently progressing negotiations with an insurer and we are hopeful of a breakthrough. The result will be known in the next fourteen days, following some analysis of groups' levels of activities and likely insurance needs.

RANSW will advise all affiliate groups as soon as cover becomes available, and the terms under which it is being offered. Groups who require immediate public liability cover are being encouraged to pursue their own avenues of enquiry.

In the mean time, Regional Arts NSW has organised a forum for other organisations involved in delivering regional programs - all of which are facing with the same difficulties - and will continue to lobby for government intervention should we be unable to achieve a satisfactory outcome for arts and cultural groups in regional and rural New South Wales.