A government-backed insurance scheme should be established in the Australian Capital Territory to provide affordable cover to community organisations, says Scouts ACT, as insurance costs reach a quarter of its operational budget. 

Scouts ACT is paying almost $350,000 for insurance this year, which it says is “unsustainable” and second only to employee benefits.  

It wants a similar approach to that used by the Victorian Managed Insurance Authority, which provides affordable public liability insurance to organisations including Scouts Victoria. 

Rising premiums, high deductibles and barriers to obtaining appropriate coverage threaten the viability of youth development programs and community groups securing fit-for-purpose insurance, Scouts ACT says. 

“We have come dangerously close to losing critical coverage. The current insurance landscape is unsustainable for community organisations,” it says.  

"Essential activities, such as adventurous programs for young people, are becoming uninsurable, threatening the future of these experiences for a generation. 

“In 2024 Scouts ACT came within 48 hours of losing our public liability cover. While we managed to secure it at the last moment, the premium had increased by 148% from the previous year.” 

In a submission to a recent inquiry into insurance costs in the ACT, the association says it is facing escalating challenges in obtaining appropriate cover it can fund, and the territory could facilitate a pooling scheme in which community organisations contribute to a central fund. 

"The ACT government should implement public sector-backed insurance options to provide affordable coverage,” it says. “A government-backed risk pooling mechanism could be introduced to aggregate the risks of multiple community organisations, thus lowering premiums for individual entities.”  

Public liability and Industrial Special Risks/property insurance premiums – the two largest components of its insurance costs – have “skyrocketed”. Deductibles are so high they make the insurance “effectively unusable,” it says. 

Scouts ACT also says molestation cover gaps has resulted in significant financial exposure and insurers are reluctant to cover national redress claims due to the low burden of proof required. “This results in a significant financial burden on the organisation despite paying premiums.” 

It wants government-facilitated molestation cover solutions, saying support should be provided to help community organisations manage historical insurance gaps related to survivor claims that are “the result of market failure”. 

Scouts ACT’s public liability insurance premium jumped 168% in 2023-2024 from the previous year. 

This year, it successfully reduced the premium by 21% using offshore options and dedicating "significant time and effort to educating the insurer about our unique circumstances.” The premium for 2024-2025 is still up 112% on what was paid in 2022-2023. 

See the submission here.