NFP / Association Board — Association Liability
Volunteer boards run real risk. Association Liability is the NFP equivalent of D&O.
Incorporated societies, NFPs, industry bodies, sports clubs, body corporates — boards can be sued for breach of duty even when serving without pay. Association Liability bundles D&O + Employment Practices + Statutory + (sometimes) Crime, tailored for non-trading entities. Pay close attention to member-vs-member exclusions and the volunteer definition.
Cover types most relevant
- Association liability
Association liability covers the boards of incorporated societies, NFPs, industry bodies, sports clubs and body corporates. Structure mirrors management liability but with NFP-specific exclusions (member-vs-member disputes, volunteer-status).
Watch out for
- member versus member: Standard member-vs-member exclusions can block claims by one board member against another. Look for derivative-action carve-out.
- volunteer: Definition of 'volunteer' varies — some wordings exclude anyone not formally named on the board minutes. Check yours.
Related topics
This scenario is built from FCIB-panel wordings (NZI · QBE · AIG · Zurich · Delta · Dual) plus Vero as an off-panel market comparator. Clause-level cover matches require the wording corpus to be populated for each product — where it isn't yet, the page shows "Not on file — request latest wording from insurer via FCIB" rather than fabricating an answer.
For a tailored quote on the cover types listed above, contact First Commercial Insurance Brokers Ltd (FSP748591): 0800 437 699 · stewart@fcib.co.nz