Insurance for Charity and Voluntary SectorsInsurance for Charity and Voluntary Sectors
Added on Wednesday 19th June 2019
Charities and fundraising events are great causes. It is a wonderful thing when people from different communities come together to raise money and awareness to benefit the lives of others in need. Money can be raised in so many ways from music events, fun runs, and cake sales and in your High Street with the humble charity shop.
The aim is to raise money but what would happen if, in the event of injury or damage to property, you discovered your insurance didn’t cover you, or the organisation had not set up insurance cover? It would be a great shame to lose money when you are trying to make the opposite happen. No matter the size, nor how many precautions are taken, or how much planning, risk assessments and preparation go into an event or the running of a charity, incidents can occur.
It is a legal requirement that charities have insurance coverage as charity trustees have a duty to protect their charity`s assets and resources, as well as the public when you interact with them at charity or community events.
If there are paid employees under the charities name, you are legally required to have Employers Liability Insurance. If you are held liable, this provides cover for injury suffered by your employee in the course of their duties for your organisation. Whilst not all charities have paid employees, what they do have in common with other charities is volunteers, and trustees. Charity insurers typically recognise volunteers and trustees as if they are paid employees and would therefore be covered by the Employers Liability section of a charity policy, but do check your own policy’s definition of ‘employee’ to be certain.
Your fundraising events would be covered under Public Liability insurance to protect the public. Cover can be arranged for the duration of an event or series of events, or you may have an annual charity policy if you are regularly doing other activities.
For your core charitable activities, there are, other areas of insurance to consider such as;
Professional Indemnity cover – to cover unintended errors or omissions in the professional advice you provide.
Motor Insurance – for your vehicles whether collecting or delivering donations, providing community transport. If your volunteers use their own vehicle for charity activities such as volunteer driving, they must check with their motor insurer that they are covered to do so by their motor insurance policy.
Building and Contents cover – protecting the physical assets of the charity, whether buildings, computer equipment, general furnishings.
Portable equipment – for items such as laptops, projectors, display stands, musical instruments which get moved around a lot and so need UK or worldwide cover rather than just to be covered as Contents in a single location.
Trustees and Directors Liability – protecting your trustees from personal financial cost if a claim is made against an individual trustee that their conduct has somehow caused financial loss to a charity client, or a third party and they seek to recoup their loss from you.
Personal Accident - employees and volunteers of charity organisations can be insured for this optional cover under a charity policy. It pays a one off cash benefit in the event of accidental death or life changing injury, ie: there is no employer’s negligence causing the injury (or it would be an Employers Liability claim). There can also be benefits paid for temporary disablement, and the levels of benefit do vary so it is important to check with your insurer or insurance advisor.
We understand it may seem daunting with all the many different aspects to cover, that’s why we urge you to get in contact with Reid Briggs so that you can avoid being in a vulnerable position and you can talk through the specifics with one of our experienced and friendly team members.
Call Reid Briggs on 01323 438843 or email firstname.lastname@example.org