B arry Davis and Shirley Greer, insurance executives who specialise in charities not-for- profit organisations, social enterprises, community interest companies and care organisations look at some of the top insurance tips for charity trustees. Why does my charity need insurance cover? All charities trustees have a duty to take out insurance to protect the assets and resources of their charity. No matter what your charity or not-for-profit organisation does, it will encounter a number of risks associates with loss, damage or liability arising from the risks it faces through its activities. To start with the basics: a charity may need buildings, contents and events insurance to cover their property against loss or damage. Charities needing insurance to cover against third party liabilities will require public indemnity, and may need professional liability insurance. If your charity employs any staff you are required by law to buy employers’ liability insurance, and even if a charity operates with only volunteers, they will still have the same duty of care to protect them.
Who can tell me where to get insurance?
The government’s official advice (Publication CC49 Charities and Insurance) is: “When trustees are thinking about taking out any type of insurance cover, they should carefully consider taking proper independent professional advice if they do not have the expertise themselves. It is usually best to use an insurance broker who has an understanding of charities’ insurance needs and who is in a position to place business with any one or more of a range of insurance companies.” My charity already has a finance officer – surely it’s up to them to sort all this out? Our advice is that it is the responsibility of all the trustees to work together to make sure the charity is run properly. This includes getting the right insurance from a broker who will take the time to listen and understand what you do. Charity insurance is not a ‘one size fits all’ any more than what your charitable organisation does being the same as all the others. For example, if you have a charity dealing with vulnerable children and adults, you need to ensure that the risk of abuse is specified in the policy, under what basis it is insured and the conditions they are subject to, for example, safeguarding policies and checks.
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