Clubs - Legal Issues

There is no single place you can go to find out all the legal issues that may impact on your club, however the work you will do in risk management and in joining the Club Development Network will assist you greatly in this area.

Some of the areas to consider are:

• Will the club employ paid staff? – if yes then www.eric.sa.gov.au will assist you
• Will the club be supplying and/or selling food? – if yes then http://www.healthysa.sa.gov.au/ will assist you
• Will the club have young people as members and participants? – if yes then www.playbytherules.net.au will assist you
• Will the club be buying, hiring or leasing goods or services? – if yes then www.ocba.sa.gov.au provides more information on the Fair Trading Act

It may be wise to seek out some early legal advice once the club is established on what legal issues need consideration.

Incorporation
If you are part of a club or considering establishing a club, you should know about incorporation.

Incorporation is a voluntary, simple and inexpensive means of establishing a legal entity.

Incorporated Associations:

• Have their own "corporate identity"
• Can sue and be sued
• Can enter into contracts
• Usually have committees to run affairs
• Have documents lodged on a public register
• Are often eligible to apply for grants

In considering whether or not to incorporate you may wish consider obtaining legal advice. A solicitor will be able to assist in preparing rules, completing forms and provide you with advice on these issues.

Check the Office for Consumer and Business Affairs website for more information.

Risk Management
One of the key considerations for any club in delivering programs and services is risk management.

To assist organisations in understanding what risk management is and how to apply it, the Office for Recreation and Sport has produced a Risk Management Resource for Recreation and Sport organisations.

Good risk management practices can also help organisations focus on opportunities for improvement and enable them to achieve their aims and objectives.

The resource gives you basic information to help you understand what you need to do and why to reduce the likelihood of potential liabilities occurring and limiting the consequences if they do occur.

The resource is available (one per club/association) FREE and can be obtained by forwarding an order form.

Download order form (20kb)

You should receive the resource within 7 working days of sending your request.

Insurance
Insurance is one option for organisations seeking to manage risk and liability, but it is important to first identify what sort of insurance you require. This is normally done via the organisation’s Risk Management Plan.

The ORS is not an insurance broker. It does not recommend specific products or directly provide insurance, nor does the State Government. However we are aware of some opportunities and recommend that you investigate these.

• Affiliation with your State or National Body:
  Many state and national sporting bodies are involved in what are termed ‘Group Insurance’ schemes. These involve the State or National body negotiating an insurance package on behalf of all of their members and each affiliated club is then able to purchase insurance through the scheme.
  
  Operating as a group enables the risks and costs to be shared and often leads to much lower premiums than if your club acted solo. In some cases the cost saving may partially or wholly offset the cost of affiliating with the state or national body.
  
  To find out more contact the State Association for your sport or activity.
  
• Using a facility owned or leased from Local Government:
  Where your club uses a facility located on land either leased or licensed from a Council, that club may be able to obtain insurance through the Local Government insurance broker, Local Government Risk Services.
  
  You should contact Local Government Risk Services on (phone) 08 8235 6410 to see if your situation meets their criteria.
  
• Community Care Underwriting Agency (CCUA):
  The CCUA was formed in response to the need for Public Liability Insurance for not-for-profit Organisations.
  
  The primary purpose of the CCUA is to help not-for-profit Organisations operating in NSW, ACT, Western Australia, South Australia, Northern Territory & Tasmania get access to Public Liability Insurance for activities including community events, community centres and home care.
  
  This is designed for organisations that have the following characteristics:
  • Provide services to the broader community
  • A not-for-profit organisation that has turnover or funding of no more than $2 million per annum
  • Does not distribute profits to its members
  • Comprises mainly volunteers

CCUA can be contacted by phone on 1800 023 456 to register your interest, or (02) 8227 8230 for other enquiries.

Download more information on CCUA (152kb)

• Individual Insurance Brokers
  There are many insurance brokers in South Australia who may be able to assist you. Three of the larger agencies operating here are:
  
  AON Insurance: 08 8301 1111
  Marsh Insurance: 08 8211 7655
  Adelaide Risk Services: 08 8235 3444

More information on the various types of insurance available can be obtained from the Centre for Innovation, Business and Manufacturing, BizFact series or Office for Volunteers