The Role of Insurance in Managing Risk
Some risks, such as flood, fire or theft, are unavoidable. In cases where risks are unavoidable it is common practice to “transfer” the whole or part of the responsibility for the risk to another party via insurance to limit the impact on the organisation. It is important to note taking out insurance or indemnity releases does not limit the risk of the incident itself, it simply helps to protect the organisation if an incident does occur. Organisations still have a responsibility to limit in every way possible, the chances of an incident occurring. Insurance is not an excuse for negligence.
Types of Insurance Available
There are a range of insurance covers available to sport and active recreation organisations. Some of these, such as public liability and directors and officers insurance, are considered essential and appropriate policies should be held by all organisations. For other types of insurance, it is up to the individual organisation to determine which types of policies are appropriate for their needs. Your insurance requirements should be discussed with a trained professional to ensure you have the most appropriate cover in place for your organisation and the types of activities you run.
Further information regarding types of insurance can be found below in VicSport’s Guide to Insurance Cover for Sport & Active Recreation Organisations