All charities face risks, and although every charity usually has a stringent set of risk management policies in place, sometimes these are not enough. It is recommended that insurance is therefore in place to help mitigate any loss as and when a claim is made. As the old saying goes ‘hope for the best but plan for the worst’.
As with all commercial insurances, there are some sections of cover that are required by law and others that are not.
Employers Liability is a legal requirement, not just for paid employees but also extending to volunteers. This cover must be purchased and it takes the view that all staff (whether permanent, temporary or voluntary) should have received the training necessary to carry out their duties and that any essential checks, such as DBS checks, have been carried out by the charity in advance where required by law or regulation.
Public Liability is an important level of cover for any charity wishing to operate as it covers your legal liability for injury to any person (other than employees) and/or loss or damage to property.
Business Interruption is an element of cover that is often overlooked. This cover becomes active following an insurable loss, such as a fire or flood, and its purpose is twofold. Firstly, to ensure that your charity gets back up and running as soon as possible (if possible) and, secondly, to limit and financial loss. There are different types of business interruption cover and your insurance broker should discuss your exact requirements carefully to ensure that you are covered correctly.
Trustees Indemnity & Management Liability covers are also important to a charity. It is vital to know that a claim can be made against the trustees individually if it can be proven that they have acted negligibly in their role. Therefore this section of cover insures against financial losses and legal costs arising from the errors or omissions of trustees and also, usually, officers, employees and even volunteers.
We take great pride in working closely with charities. We understand that arranging insurance can be time consuming and that time spent pouring over insurance can be spent much better elsewhere, especially where charity work is involved.
We work to reduce effort on your part and collect information proactively in the first instance and throughout the relationship. Time and time again we have sat down with charities, both large and small, that are not adequately insured.
Charities have the potential to grow quickly and insurances can soon become insufficient. Having a broker in place that manages your insurances effectively on your behalf can prove invaluable.
If you are a charity and would like some advice on your insurances, please do get in touch with us on 01603 954054.