Charities throughout the UK face many risks that can result in loss, damage or liabilities, both for trustees and for the charity as a whole. Although many of these risks are the same as those faced by other businesses, charities often have their own unique insurance requirements.
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Some policies will be required by law, while optional extras can also boost your protection. Your tailored package can include:
- Employers’ liability
- Commercial motor
- Buildings and contents
- Public liability
- Legal expenses
- Trustee indemnity
Risks faced by charities and not-for-profit organisations of all sizes include a loss of charity assets or resources, damage to a charity’s property and third party liability for professional indemnity or public liability.
Depending on their circumstances, charities may be required by law to purchase employers’ liability insurance with a minimum limit of £5 million. If the charity owns or operates vehicles it must also comply with the Road Traffic Act, taking out a minimum of insurance against third party injury and property damage.
Common Covers to Include
The Charity Commission recommends arranging the following covers in order to mitigate risks; buildings, contents, public liability, employee dishonesty, legal expenses, professional indemnity and trustee indemnity.
Depending on their activities, charities may also require cover for events, personal accidents, terrorism and political violence, increased cost of working, staff sickness and others.
Many charities will use the services of volunteers. Though not considered employees, charities still have a duty to ensure health and safety and provide proper training and supervision. If a volunteer is injured as a result of the charity’s negligence, they could file a claim against the charity or trustees.