associations > not_for_profit > not for profit insurance
Not for Profit Insurance

pdf/proposal_forms/associations.pdfpdf/proposal_forms/associations.pdfThe Civil Liability Act 2003 (Qld), which was passed by the Queensland Parliament in April 2003, introduced a number of reforms including some provisions which are of particular interest to Not for Profit organisations.

Under the Civil Liability Act 2003 (Qld), a volunteer does not incur any personal civil liability for any act or omission done in good faith when doing community work that is:

1. organised by a community organisation;
   or
2. as an office holder of a community organisation.

The Civil Liability Act 2003 (Qld) does not apply, amongst other things, to:

• any claim occurring before the provisions of the Civil Liability Act 2003 (Qld) commenced on the 9th April 2003.
• any claim where the volunteer did not act in good faith.
• any claim where the volunteer was intoxicated when doing the work and failed to exercise due care.
• any claim where the volunteer knew, or ought reasonably to have known, that they were acting outside the scope of activities authorised.
• any claim where the volunteer knew, or ought reasonably to have known, that they were acting contrary to the instructions of the community organisation.

Some Not for Profit organisations have interpreted the volunteer provisions of the legislation as replacing the need for insurance and in particular, Public Liability insurance.

Whilst individual volunteers may be afforded protection from personal civil liability under the CCivil Liability Act 2003 (Qld), the community organisation itself may still be liable for any negligence which led to injury or damage to a third party.

It is therefore prudent to maintain insurance and Not for Profit organisations would be well advised to seek their own legal advice on the effects of the legislation on their community activities.

If an organisation chose not to obtain appropriate insurance cover, should an action be brought, it is possible a management committee may have to prove they were acting in good faith and without reckless disregard for the safety of any other person. Members of management committees need to consider what establishes good faith, and consider all possible arguments that may be raised, such as whether, in the circumstances, they have acted appropriately in the current insurance market in failing to obtain insurance cover. If management committees were found to have not acted in good faith by not obtaining insurance, the Civil Liability Act 2003 (Qld) may not offer protection to individual volunteers and an action may be brought against the individual members of the organisation.

A Not for Profit organisation should consider a risk management approach to their potential liabilities and insurance should continue to play an important part in that risk management plan.