How to be sure you get the right insurance as a charity group?

The Charity Commission shows that as of 30 September 2018 there are over 168,000 charities in the UK with a total annual income that exceeds £77bn*. It is a huge sector and just like any business, charities are exposed to a wide range of risks and there are a number of different insurance covers available to provide protection.

The broad nature of the sector and different types of charities that exist means that insurance requirements can vary. For all those reasons, it pays to consult a specialist in charity & community group insurance, such as Stanmore Insurance Brokers. We will be able to offer you a bespoke package of insurance that is tailored to your own requirements.

Before that can happen, you need to think about your insurance requirements in as much detail as possible, so here are some of the issues we advise our clients to consider when planning their essential media professional liability insurance.

Be clear explaining the activities of your charity

Insurers need to understand the fundraising events being carried out, what activities, for example, are you hiring a bouncy castle? Who are the services being provided for and do you engage volunteers? Also, do your employees go into the community? Insurers being fully aware of the services provided will ensure the relevant insurance is in place and that you are able to comply with any conditions imposed.

What insurance do we need?

Employers Liability

The standard cover provided by insurers is £10m but dependent on the number, age and activities of your employees you may wish to consider a higher limit.

Public Liability

This cover isn’t compulsory but essential. It will provide cover in the event of a third party due to the charity’s negligence and even if not negligent the insurers will work alongside the charity to defend their position.

Property Damage

Any property or equipment owned by the charity, for example, the building should be insured in the event of accidental damage, theft, fire, storm, flood and other such risks. Don’t forget to mention if you have storage facilities in sheds, garages and containers.

Business Interruption

Many charities only take out insurance to find alternative premises in the event of a loss. A charity needs to consider insurance to protect them from any Loss of Revenue, which is not unusual if a major loss occurs.

Professional Indemnity

Where a service is provided, such as counselling or the provision of advice/information, Professional Indemnity insurance should be considered. This will provide cover for the costs of defending the charity where incorrect or negligent advice has been provided to a service user and a loss has been suffered as a result of following that advice.

Trustee Indemnity/Liability

The difference here is that it is the trustees personal assets that will be at risk rather than the charity. This is therefore worthy of serious consideration to ensure that you protect these individuals.

Abuse

For any charities that provide services to vulnerable people, including children, you should review your insurance policy to know and understand what form of abuse cover is included, if any.

Cyber

If you hold a lot of data on service users, have a website, are reliant on computer systems or take card payments or make electronic payments you may need to consider cyber insurance to provide protection in the event of a data breach or cyber ‘hack’ which can affect operations in a number of ways.

Financial Crime

Sitting alongside Cyber is Financial Crime. This provides additional protection in respect of any risk of internal or external financial crime. Thieves are becoming extremely clever in knowing how to fraudulently remove funds from businesses and this is not always through Cyber activities.

What is an appropriate level of insurance cover?

Beyond Employers Liability which we have discussed above, there is no ‘standard’ for a recommended level of cover. Risks vary hugely depending on the charities activities. It is essential to understand all risks and make objective decisions based on knowledge, cost and the charities own attitude to risk.

A look at past cases, however, in which mistakes that could be seen as subjective have still resulted in crippling damages awards, should tell you never to underestimate the danger.

Fortunately, it’s not a decision you have to take on your own. We are a highly experienced assessor of risk for all types of charity and community group insurance and offer informed guidance to help you understand the risks specific to you. Our approach is to provide you with a menu of choice, whereby you select the specific covers and protections your individual business needs (with advice and assistance from our experts of course.)

*Recent charity register statistics: Charity Commission (2018)

Insurance types

Stanmore Insurance Cyber Insurance Icon

Business Cyber Insurance Cover

Protect your business in the event of cyber attack

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Stanmore Insurance Employer Liability Insurance

Employers Liability Insurance

Provides you with cover against claims from employees

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Property Damage Insurance Cover

Make sure your business can continue if the worst happens

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Stanmore Insurance - Public Liability Insurance Icon

Public Liability Insurance Cover

Cover all kinds of claims made in a wide variety of work environments

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Stanmore Insurance Professional Indemnity Insurance Icon

Professional Indemnity Insurance Cover

Provides cover to pay for legal costs and expenses if a customer claims.

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Stanmore Insurance - Commercial Financial Crime Insurance Icon

Commercial Financial Crime Insurance Cover

Protect your company against direct losses that could occur due to the theft of money

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Directors & Officers Insurance Cover

Liability cover that protects a company’s directors, senior management and other key personnel

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Stanmore Insurance - Business Interruption Icon

Business Interruption Insurance Cover

Insures you against losses of income that could occur if you were unable to trade due to an unexpected event

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