Association Liability Insurance Claim: Treasurer Misappropriates $70,000

What Happened: A sporting association discovered that their treasurer had allegedly misappropriated approximately $70,000 from the association’s bank accounts. The treasurer had been given exclusive access to the association’s banking without dual authority requirements, allowing them to withdraw and transfer funds without oversight or approval from other committee members. This breach of trust left the sporting association facing significant financial losses that threatened their ability to continue operations and support their members’ sporting activities.

How Association Liability Insurance Provided Essential Protection: The sporting association’s liability insurance policy included coverage for employee dishonesty and misappropriation of funds by officers and committee members. The insurer recognised the claim and provided coverage for the financial loss caused by the treasurer’s alleged misconduct. The matter was settled for approximately $80,000, including legal expenses and investigation costs, allowing the association to recover from this devastating breach of trust and continue serving their sporting community.

Committee member misconduct can devastate association finances and member trust. Learn more about our Association Liability Insurance to protect your sporting club or association against internal fraud, committee misconduct, and financial crimes.