Charity Insurance – A policy that supports your charities needs
Does our charity really need insurance?
By law, you have a duty of care to protect your charity’s assets and resources. Depending on what your charity does, you can buy insurance to protect its money, property and reputation.
In addition to your duty of care there are a number of types of cover that are legal requirements depending on how you run the charity:
- Employers Liability Insurance: You must get employers’ liability insurance if your charity employs paid staff or uses volunteers. For the purpose of insurance volunteers are treated as employees. This protects your charity against claims for any injuries suffered while people are working for you. By law, you must have at least £5 million worth of cover and display your insurance certificate prominently in your charity’s premises
- Motor Insurance: If the charity operate vehicles on public roads you must take out the appropriate insurance to meet the requirements of the Road Traffic Act.
We would also recommend you consider the below additional covers to ensure your charity is appropriately protected:
- Public liability insurance is recommended for any charitable organisation that interacts with the public. This covers the legal costs and expenses in defence of alleged injuries to members of the public and third party property damage claims. It also covers damages and compensation awards connected to the claim.
- Property Insurance: This can cover your buildings, contents, computer equipment, money and any relevant promotional materials or stock against theft, loss or accidental damage
- Business interruption insurance can cover the reduction in income following an insured event such as fire or theft.
- Professional Indemnity Insurance– covers the cost of defending your charity against allegations of professional negligence. For example, if you are accused of providing poor or negligent advice to a client. It covers the legal fees, as well as any compensation that may be payable.
- Events Insurance– To cover fundraising events such as fetes, shows or performances. You can also extend to cover cancellation due to bad weather.
- Trustee and Management liability – To cover the key decision makers of your charity for legal claims made against them for a breach of trust, duty or negligence committed by them in their capacity within the charity. These claims could come from third parties or the charity. Without this cover the legal costs would be payable personally by the decision maker accused.
- Fidelity Guarantee Insurance: This protects the charity against loss of money or goods in the event of fraudulent or dishonest acts of employees and volunteers.
- Cyber Liability Insurance protects your charity in the event of a cyber attack. It offers a variety of covers including the costs of restoring data and equipment, informing your clients, meeting ransom demands and loss of your net profit. It also pays your legal defence costs and damages you are legally liable to pay to other parties.
- Legal Expenses Insurance: This covers your legal defence costs connected to a variety of disputes including employment tribunals, health and safety breaches and contract disputes. It provides you a telephone advice service that will provide you practical guidance on human resource and health and safety compliance to help prevent legal disputes.
What kind of policy do we need and where can I arrange these covers?
A generic business insurance policy is unlikely to provide your charity with the vital protection it needs against the specific risks your charity faces.
We would recommend that you take out a tailor made charity insurance, built to cover your business’s needs, with an insurer that knows and understands the risks involved with your charity.
At Stephensons Risk Management we understand that every business has a unique set of insurance needs. You want to know you have the right cover in place to protect your business. You will be appointed a personal advisor who will handle all your insurance queries and manage all your insurance needs moving forward. Your advisor will come out and get to know your business, allowing them to build an insurance policy that meets your insurance needs and ensures your business is protected, should the unexpected occur and you find yourself faced with a claim situation.