As the head of an association, are you wondering whether you should take out insurance on behalf of your organization? It's important to note that in France, not all associations are legally obliged to take out civil liability insurance. However, even if this is not always a legal obligation, it is often advisable to do so in order to protect yourself, particularly in the event of property damage or bodily injury occurring in the course of your activities and caused to third parties.
The decision whether or not to take out insurance will depend on the type of activity your association offers, its size, legal structure, by-laws and budget, as well as contracts with other parties, such as a lessor. It's up to you to decide whether or not to take out insurance.
To guide you through this process, we've provided some valuable pointers that you should be aware of.
Who needs insurance?
First of all, let's take a look at the associations concerned by the obligation to take out civil liability insurance.
These are the following associations:
- Sports associations ;
- Approved hunting associations ;
- Associations that organize or sell individual or group trips or stays;
- Associations running childcare facilities for children under 6;
- Associations welcoming minors, whether disabled or not, or operating accommodation facilities for minors;
- Associations involved in prevention, care or diagnosis;
- Vehicle owners' associations.
Why take out liability insurance?
Third-party liability (TPL) insurance is designed to protect you and your association, as well as your members, managers, employees and volunteers, in the event of incidents linked to the association's activities.
Here are some of the main risks covered by such insurance:
- Material damage: if a member of your association causes material damage to a third party during an activity, liability insurance will cover the cost of repairing or replacing the damaged goods.
- Bodily injury: if a participant is injured at an event and the injury is attributed to negligence on the part of your association's staff, liability insurance will cover all expenses related to the injury, including hospitalization, medical, rehabilitation and loss of earnings.
- Financial losses: if your association causes financial losses to a third party as a result of its activities, insurance can cover these losses.
- Legal proceedings: liability insurance can cover the legal costs and lawyers' fees involved in defending your association if it has to appear in court following a complaint.
- Damage to reputation: associations, particularly those involved in communications or public relations activities, sometimes wish to include cover for defamation, slander or damage to reputation in their liability policies.
Other types of insurance
Of course, the type of insurance your association needs will vary according to a number of factors, such as its nature, activities and specific needs. In addition to liability insurance, there are other types of insurance you may wish to consider, depending on your association's situation:
- Tenant's insurance: if you rent premises, it is compulsory to take out insurance to cover rental risks, covering at least fire, water damage and explosions. Although this obligation does not apply to associations owning real estate, it is strongly recommended that you take out comprehensive insurance.
- Comprehensive insurance: this covers the association's movable and immovable property, such as equipment, furniture, machinery and other assets, against damage, theft and loss.
- Directors' and officers' liability insurance: this is designed to protect the association's directors and officers against claims arising from decisions or actions taken within the scope of their responsibilities.
- Event cancellation insurance: if your association organizes various events, this insurance can cover financial losses in the event of cancellation due to unforeseen circumstances, such as a natural disaster.
- Health and provident insurance for employees: compulsory if you have employees.
- Voluntary insurance for volunteers: although volunteers are generally covered by the association's civil liability, voluntary insurance offers additional protection, especially for those involved in potentially risky activities.
- Motor insurance: like all vehicle owners, you are required to take out at least "third-party" insurance for all your association's vehicles. However, you can also opt for comprehensive insurance offering more extensive coverage.
- Cyber-risk insurance: if your association manages sensitive data or uses IT technologies, cyber-risk insurance can be useful in protecting you against cyber-attacks and data breaches.
- Special events insurance: you can take out one-off insurance for the duration of a trade fair, exhibition or conference, for example.
To determine which insurance policies are appropriate for your association, we recommend that you consult an insurance broker or professional who can best advise you on your specific needs.
And to facilitate the management of your association's expenses, an association online account can also prove to be an extremely practical tool, enabling you to track transactions in real time.