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 liability for professional indemnity or public liability. Part of mitigating these risks is having an appropriate insurance policy. The following is a brief overview of different covers that charities should consider when looking for a charity insurance policy.
Compulsory Charity Insurance
There are types of insurance that charities may legally be required to purchase, depending on circumstance.
- Employers’ Liability Insurance (EL)—A charity that employs staff is considered an employer under the law. All UK employers are required to take out EL with a minimum cover of £5 million for injuries or diseases their employees suffer while on the job.
- Motor Insurance—If a charity owns or operates motor vehicles, it must comply with all provisions of the Road Traffic Act—including the requirement to take out insurance against third party injury and property damage. If employees, volunteers or trustees use their own personal vehicles for charity business, the charity must also make sure that the vehicle owner’s insurance covers such use. If it doesn’t, the charity may need to purchase additional premiums.
Common Covers to Include
Even if a charity is not required by law to carry insurance, it should seriously consider including the following covers recommended by the Charity Commission in a charity insurance policy in order to mitigate its risks.
- Buildings Cover
- Contents Cover
- Public Liability Cover
- Employee Dishonesty Cover
- Legal Expenses
- Professional Indemnity
- Trustee Indemnity
There are additional covers available, 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.
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. The charity and its volunteers should also be covered in case a third party is injured due to the actions of volunteers. Charities should check their insurance policies for the following:
- Whether the insurance policy includes volunteers, such as employers’ liability extending to volunteers
- What the policy definition for ‘volunteer’ is
- Whether any upper or lower age limits apply
- What types of volunteer activities are covered
Get Help from Your Broker on your Charity Insurance
Because each charity’s purpose or public benefit aim is different, it takes an experienced broker with expertise in the industry to create a bespoke policy that makes sure all risks are addressed. Rahon Insurance has the expertise and experience to work with your charity and trustees. We understand that running a charity is time consuming so leave your insurance to us, the professionals. We’ll do all the hard work for you and you can have peace of mind knowing your charity insurance has been organised by a broker who has your best interests in mind.
Call us on 01332 988522 or complete our quote form and a member of our specialist team will get in touch with you soon. We look forward to speaking with you soon.