Charities throughout the United Kingdom face many risks that can result in loss, damage or liability for trustees—and for the charity as a whole. Risks include a loss of charity assets or resources, damage to a charity’s property and third party claims. Part of mitigating these risks is having an appropriate insurance policy.

Compulsory Charity Insurance Cover:

There are types of insurance that charities may be legally required to purchase, depending on circumstances.

• Employers’ Liability Insurance (EL)—A charity that employs staff or has volunteers will need employer’s liability by law. All UK employers are required to take out EL to provide cover towards injuries or diseases their employees suffer while on the job.
• Motor Insurance—If a charity owns or operates motor vehicles, they are required to take out insurance. If employees, volunteers or trustees use their own personal vehicles on charity business, the charity must also make sure that the vehicle owner’s insurance covers such use.

Even if a charity is not required by law to carry certain insurance, it should seriously consider including the following covers recommended by the Charity Commission in order to mitigate its risks.

• Buildings Insurance—Charities that are freehold owners of a building should insure the building for its full reinstatement value. If the charity is a lessee of the property, the terms of the lease should be reviewed to determine who is responsible for insuring the building—the charity or the landlord. Depending on the terms, the charity may also be responsible for repairs.
• Contents Insurance—Charities may want to have a policy in place that covers the contents of the building, such as furniture, equipment and cash. Charities should also find out whether theft cover is provided in the policy, including the cost of investigating and attempting to recover stolen items.
• Public Liability Insurance—This cover provides protection towards charities from third party legal liability claims for bodily injuries and illness, and loss or damage to material property while on your property. This may also be appropriate for charities that carry out business activities away from their own premises. The charity and trustees would be indemnified against certain claims from the public.
• Legal Expenses— This cover can help with the costs of certain legal expenses which may arise if the charity has to bring or defend legal proceedings.
• Professional Indemnity Insurance—Whenever a charity provides a professional service, such as counselling, or any form of advice or information, the charity may be held liable if the service, advice or information was provided or alleged negligently. The charity could be held legally liable for loss, injury or damage that was sustained when the service was provided or as a result of following the advice or information.
• Trustee Indemnity Insurance—Trustees in a charity are required to follow certain duties laid out by law. Trustee indemnity insurance contributes towards legal costs for legal claims against them that arise from negligence or a breach of trust or duty. It can also cover the charity for corporate liabilities that arise from a trustee’s breach of duty or negligence.
• Additional Covers—Depending on your circumstances, your charity may also want to consider covers for events, personal accidents, terrorism and political violence, increased cost of working, staff illness and others.

Volunteer Consideration

Many charities will use the services of volunteers. While volunteers are not considered employees, charities still have a duty to ensure their health and safety and give them proper training and supervision. If a volunteer is injured as a result of the charity’s negligence, he or she could file a claim against the charity or trustees.

Call us directly or complete our quote form and we’ll conduct a full review of your business’ insurance needs

We will approach our panel of insurers to find cover that meets your requirements at a competitive rate

Once agreed, your policy will start and you’ll be protected towards several eventualities.