The Insurance Act 2015: What It Means for Charities

At Unity Insurance Services, we understand that charities, voluntary organisations, and not-for-profits face unique challenges. Whether you're supporting vulnerable communities, running youth programmes, or a religious organisation, your focus is on making a difference, not interpreting legal jargon.

However, when it comes to insurance, there is a key piece of legislation that charity trustees and leaders should be aware of: the Insurance Act 2015. It affects how insurance policies are arranged, the way information must be shared with insurers, and how claims are assessed and handled.

We’ve put together this guide to help explain the key points in a straightforward way.

What is the Insurance Act 2015?

The Insurance Act 2015 came into effect on 12 August 2016. It applies to most commercial insurance policies in the UK, including those taken out by charities and not-for-profit organisations.

The Act aims to provide greater clarity, transparency, and fairness between insurance buyers and insurers. It makes important changes to how risks must be presented to insurers, and how insurers are permitted to respond in the event of a breach or a claim.

Key Takeaways for Charity Insurance

1. Duty of Fair Presentation

Under the Act, charities have a legal obligation to provide a fair presentation of the risk when arranging or renewing insurance. This includes:

• Disclosing every material circumstance that your organisation knows (or ought to know) about your operations and potential risks
• Ensuring that information is presented clearly and accessibly
• Highlighting any unusual activities or risks (such as overseas work, large events, or working with vulnerable individuals)

At Unity, our role is to help guide you through this process, ensuring that relevant information is identified and passed on to the insurer appropriately. We’ll ask the right questions and support you in meeting your disclosure obligations.

2. Greater Clarity on Breaches of Policy Terms

Previously, if an organisation breached a term or condition of their insurance policy (even if unrelated to a claim) insurers could refuse to pay.

Under the Insurance Act 2015, insurers can only refuse claims if the breach is relevant to the actual loss. For example, if a security alarm wasn’t set but the claim was related to flood damage, that specific breach may not automatically prevent the claim from being considered.

This change is designed to encourage fairer treatment, however there is no set outcome and every case is assessed on its individual circumstances.

3. Proportionate Remedies for Non-Disclosure

If a charity unintentionally fails to disclose relevant information, insurers are required to apply a proportionate remedybased on what they would have done had the full information been provided. 

Depending on the situation, this might mean:

• Adjusting the premium
• Applying different policy terms
• Reducing or declining a claim (in more serious cases)

However, if the non-disclosure was deliberate or reckless, the insurer may still be entitled to void the policy entirely.

What This Mean for Unity’s Charity Customers

As a broker that works exclusively with charities and not-for-profit organisations, Unity Insurance Services understands the specific challenges you face. We aim to help you meet your obligations and secure the right protection for your organisation.

Here’s how we support you:

• We work with you to present risks clearly and fairly to insurers
• We help explain policy terms in straightforward, practical language
• We recommend insurance solutions tailored to your charitable activities
• We assist you through the claims process, offering guidance at every step

Our Unity team is here to support you in protecting your people, your property, and your charitable purpose.

Talk to Us

If you’d like to review your policy, discuss how the Insurance Act affects your organisation, or simply get advice on the next renewal, we’re here to help.

📞 0333 188 0155
📩 [email protected]
🌐 unityinsurance.co.uk