Managing risk is a core part of good P&C governance. While risk can’t be eliminated entirely, understanding it and taking reasonable steps to manage it helps protect the association, its volunteers and the school community. 

Insurance is one of the tools P&Cs use to manage risk, but it is not a substitute for good decision-making and clear processes. 

Why this matters 

P&Cs: 

• make decisions that affect people, money and activities 
• organise events and fundraising 
• work with volunteers and, in some cases, employees 
• operate as incorporated associations 

Without appropriate risk management, these activities can expose the P&C and its committee members to financial, legal and reputational consequences. 

Understanding risk in a P&C context 

Risk is anything that could: 

• cause harm to people 
• result in financial loss 
• damage the P&C’s reputation 
• place the association in breach of its obligations 

Common sources of risk include: 

• events and fundraising activities 
• managing money and assets 
• employing staff or engaging volunteers 
• operating services 
• poor record keeping or unclear decision-making 

Good governance means recognising these risks and managing them thoughtfully. 

The role of insurance 

Insurance helps manage the impact of certain risks, but it does not prevent incidents from occurring. 

Insurance generally provides cover for: 

• specific types of claims or losses 
• defined activities and circumstances 
• risks set out in the policy 

Holding insurance does not remove the need to: 

• follow proper procedures 
• make careful decisions 
• comply with legal and regulatory obligations 

P&Cs should understand what their insurance does and does not cover. 

Types of insurance P&Cs may hold 

Depending on their activities, P&Cs may hold insurance such as: 

• public liability insurance (required) 
• volunteer insurance (optional) 
• workers compensation insurance (required where staff are employed) 

The types and level of cover required will vary depending on what the P&C does. 

Managing risk beyond insurance 

Insurance works best when combined with good risk management practices. 

This includes: 

• planning activities carefully 
• following school and site requirements 
• keeping clear records of decisions 
• ensuring appropriate supervision 
• reviewing higher-risk activities regularly 

Deciding not to proceed with an activity where risks cannot be managed is a valid governance decision. 

High-risk activities 

Some activities carry higher levels of risk and require particular care, including: 

• large events open to the public 
• operating services such as canteens or OSHC 
• employing staff 
• activities involving children 

These activities should be considered carefully, with a clear understanding of responsibilities and capacity. 

Reviewing insurance and risk regularly 

Risk changes over time as activities change. 

Good practice includes: 

• reviewing insurance arrangements regularly 
• considering whether new activities introduce new risks 
• ensuring decisions about risk are documented 

Insurance should reflect what the P&C actually does, not what it used to do. 

Related resources 

• Managing P&C money and risk 
• Fundraising and income 
• Spending P&C funds 
• Managing canteen services 
• OSHC and other services 
• Need a hand? We’re here to help.