Insurance Policies for Associations

Chapters – and all associations – should protect themselves by carrying insurance to cover professional liability, crime, property, and disasters. For an insurance checklist and more information on association-specific insurance options, contact The American Society of Association Executives. Here are the basic policies to consider:

• Association professional liability insurance (APL), also called nonprofit directors and officers liability insurance (D&O), is the single most important coverage in any association insurance portfolio. APL/D&O protects the association and its leadership from allegations of imprudent management or errors and omissions in conducting the association's everyday operations.

• Employee dishonesty coverage, endorsed to include computer or electronically manipulated theft. Employee dishonesty is difficult to guard against because so often the crime is perpetrated by a trusted employee with a spotless record. Losses can continue for years before they are discovered and can be for significant amounts.

• Event cancellation insurance protects your association against loss of revenue resulting from cancellation or curtailment of a convention or meeting.

• Property coverage is important if you own your building or rent your office space. Even if your assets and records are kept in a volunteer’s home, make sure you have coverage.

• General or third-party liability protects against third-party claims for bodily injury, property damage, and personal injury. Associations' service-oriented operations make them particularly vulnerable to personal injury suits.