Charity Insurance: What is it?
Insuring a charity can be a complex business, but as specialist charity insurance brokers, we’re here to make it simple.
There are plenty of insurance covers that your charity or not-for-profit organisation should have, but there are also certain types of insurance that Charities are legally obliged to have. Our charity insurance packages cover all bases but we’ve broken it down to make it easier to help you understand what your charity needs.
Insurance covers your charity is legally required to have:
Where insurance is concerned, anyone that does any kind of work for you, be it paid or voluntary, is classed as an employee. Employers Liability insurance covers you in the event that an employee (or volunteer) should injure themselves or potentially become ill as a direct result of the work they do for the charity where the charity could be seen as negligent or at fault.
When you take out Employers Liability insurance, you will be issued with a certificate. You must display a copy of the certificate where your employees or volunteers can easily read it. You are also now allowed to display this document electronically provided your employees or volunteers are made aware of where they can find a copy and it is reasonably accessible.
If your charity owns or operates any motor vehicles on public roads, these must be insured at third party level at the very least, in accordance with UK law.
Insurance covers your charity should have:
Buildings and contents
If your charity owns the building it operates from, then it is the charity’s responsibility to make sure it is insured properly against damage and also your legal liability as property owners to third parties. To make sure the building sums insured are accurate and that the building is not underinsured, we always recommend that you seek a professional valuation.
Contents insurance covers loss of or damage to property for events such fire, escape of water, theft, accidental damage etc. to items inside the buildings.
Cover is also available for money and portable property such as laptops, exhibition equipment, music equipment that is used away from your premises.
Public Liability insurance covers costs incurred for your legal liability should a third party claim for an injury or loss of or damage to property as a direct result of your charity’s negligent activities.
The Trustees of your charity are often the decision makers and sometimes, however good the intentions, mistakes are made. If a claim were to be made against a trustee, they would be personally liable to pay the legal costs of the claim and any investigations. Trustees Indemnity insurance would cover this cost to protect your trustees and the charity as a whole.
Professional Indemnity insurance is there to cover costs incurred in the event that you would need to defend your charity against allegations of professional negligence. An example of this might be giving incorrect or poor advice or service to a user of your charity.
While it cannot prevent a cyber-attack or incident, having Cyber insurance can help you pick up the pieces and cover the costs your charity may face afterwards. Cyber insurance covers the costs that you might incur following a breach, theft or loss of equipment or data and damage to your systems.
Personal Accident cover provides capital benefits for employees/volunteers of the organisation in the event they suffer injury by accidental cause whilst going about their duties on behalf of the charity.
This covers financial losses incurred by the charity if there is loss or damage at the premises that you occupy, meaning that you can no longer operate from there. This type of insurance covers loss of revenue/profits and additional costs that are incurred to keep the charity running as it should be.
For more specialist advice charity insurance and to make sure your charity has the right cover at a competitive price, call now on 01564 730 900.