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Like any organisation, charities face risks from internal, external and online sources that, if not prepared for, could have serious financial and reputational repercussions. However, there are only so many precautions an organisation can take to protect its people, its property and its liabilities, so a watertight insurance policy is paramount. But with an overwhelming array of insurance products on the market, how do you get the right policy at the right price?
Asking yourselves the following questions should help you narrow down what you need and avoid unnecessary costs.
Some cover is required by law. Firstly, if your charity employs people, including as volunteers, you absolutely must have Employers’ Liability Insurance, which protects your workers if they are injured or fall ill on the job. Secondly, if your charity owns, loans or rents vehicles, you must have third-party motor insurance to cover the costs of accidents caused by you or your employees behind the wheel.
Each charity has unique insurance needs according to their activities and assets. Think about what could go wrong and where. Who would be affected? How much could legal fees be? What are your assets worth?
In this digital day and age, you should also consider the costs of IT issues and cyberattacks .
If your charity is part of a group, the controlling body may have insurance that extends over all its members and groups. Check out their policies before you pay for cover twice.
A thorough risk assessment should highlight where your organisation is exposed to compensation claims and, in an increasingly litigious society, you can never be too careful. Public Liability Insurance can cover many risks involving members of the public, such as harm caused by the actions or negligence of your staff or volunteers. If you give advice or training, Professional Indemnity Insurance covers you if your services result in some financial loss or other grievance.
If a serious disaster strikes and your charity’s offices or premises are damaged or destroyed, the right building and contents insurance policy can help pick up the bill. To avoid underinsuring your property, find out the full rebuilding costs, which is not necessarily what you paid for it or the current market value!
You may lose income while your property is out of action. This is where Business Interruption Insurance can help cover lost income and any expenses such as the rent of a temporary workspace.
Many charities work on a tight budget and rely on the dedication of their staff, who accept lower wages, and their volunteers, who accept nothing. You can give them extra peace of mind with Personal Accident insurance, which will cover their medical expenses if they are injured.
It’s an old cliché but the devil is in the detail. Lengthy terms and conditions hide caveats and exclusions, such as exemptions for certain age groups, activities or natural hazards. Some policies even have different definitions of “volunteer”.
This is not an exhaustive list of the insurance policies and covers available and that you should consider.
We’re here to help
As an expert insurance broker, we can quickly spot the typical traps, and even help you put together bespoke insurance for your unique needs.
We're a charity owned specialist broker with over 80 years of experience, so give us a call on 0345 040 7702 and our team would be happy to walk you through your options.