As a charity you are exposed to several risks which can lead to claims being made against you, costing the charity money it doesn’t have and that could be better spent elsewhere.
As a charity you are exposed to several different types of risk which require you to consider a number of different covers, including trustee indemnity insurance. As a charity insurance broker, we aim to understand your organisation and match you with the right insurer who can offer the right cover to protect your interests.
Charity insurance will enable you to carry out services, events, and fundraising activities while also protecting your charity against liability claims, loss of assets, and allegations of wrongdoing.
Unfortunately, your non-for-profit status and good endeavours does not remove your legal liabilities to employees, volunteers, trustees and third parties. Additionally, it is prudent to insure assets that could be destroyed or stolen.
Non-profits, voluntary organisations, community groups and religious organisations can all benefit from arranging adequate charity insurance protection to guard against financial exposures which could damage the future of the enterprise.
Each charity will have different insurance needs, how much cover you buy will depend on a variety of factors. These decisions will usually be made by the board of trustees with consideration given to the risks faced in carrying out the usual activities of the charity and the likelihood of a claim or loss occurring, while also considering the possible litigation settlement and costs of defending a claim made against the charity.
Will offer financial protection to your organisation for compensation claims for injury or illness of your employees and volunteers.
Covers injury or property damage claims of persons other than your employees or volunteers in the course of your activities.
Covers the cost of defending an allegation of professional negligence. The policy cover can protect against civil litigation whilst providing advisory, counselling, consultation or other services.
Property insurance can protect your organisation's buildings, contents, stock, computer equipment and specialist equipment, against loss or damage from a range of insured perils.
The cover can provide income protection if the business is interrupted by an insured peril. Business interruption insurance will protect against the consequential loss of the interruption to trade by indemnifying against for the loss of income.
Protects your charity in the event of a cyber attack or data breach. Criminals will not discriminate and if you hold a significant amount of personal data or are reliant on your digital network, you could become a target.
Protects your charity against dishonesty, theft, or fraud by employees. Employee crime insurance provides protection for financial loss, caused by an employee's criminal or fraudulent behaviour.
Protect your staff and volunteers when they are collecting donations. The cover can offer cover for theft of money and compensation for personal assault.
The cost of insurance for charities varies depending on what you do, what cover you want, and which insurer is providing the cover, there is no one-size-fits-all, your insurance should reflect your unique set of circumstances.
Cover for small charities can start at £198 annually or £16.50 month, for a basic insurance package that might include employers liability and public liability. However, it is recommend you also consider additional covers to protect your interests.
Our job is to assess your needs and find the insurance that matches those needs, while cost is a factor it is important to consider the value of the cover provided and to make sure you are not underinsured.
Employment related issues continue to be a significant cause of liability claims made against third sector organisations. Employement practicies liability insurance can be a valuable protection to guard against claims arising from a range wide range of employment disputes.
Commercial businesses purchase insurance and so should non-profits as a means to mitigate and transfer risk. The products available offer cost-effective mechanisms to provide financial support and access to a good legal defence.
Third sector and non-profit insurance can be tailored to meet provide comprehensive cover to a wide variety of organisations including: Care homes, charities, community organisations, cooperatives, cultural organisations, educational organisation, environmental organisations, faith organisations, healthcare organisations, hospices, not-for-profit organisations, private research institutes, religious organisations, social enterprise, think tanks, and voluntary organisations.
Professional indemnity insurance should be considered when the following high-risk activities are offered: > Drugs/alcohol rehabilitation; > Working with vulnerable individuals; > Care of children, elderly or disabled; and > Training, treatment or administration of medication.
Individuals that accept roles as trustees can be held personally liable while acting on behalf of the charity. Trustee indemnity insurance offers a cost-effective mechanism to protect those individuals should an allegation occur. Any trustee, officer or employee (including volunteer) performing duties on behalf of the organisation that fails to meet their legal obligations can be held personally liable for their actions and the actions of others.
In light of the Oxfam and Red Cross scandals, the full details of which are now coming to light, it is a good time to reflect on this and other issues that have befallen charities and their trustees.
If employees aren’t achieving their individual goals or become disruptive, it becomes increasingly difficult for management to achieve their strategic objectives.