Misconceptions about charity insurance
We often hear many misconceptions about insurance. Does a group need insurance? Is a group already covered by someone else? Do disclaimers mean that no liability exists?
Hopefully come the end of this content you shall have a better understanding of how insurance works within the voluntary / third sector.
I am covered under someone else’s insurance policy
Many times a group contacts us to check their understanding that they are covered under another insurance policy. Normally the circumstances are that the group are organising an event or activities at a third party premises.
This premises could be, for example, a church, a community centre or a school. Is this assumption ever correct?
Quite often this is not the case and they assume to be insured under a separate policy. This is due to them operating out of a certain space. As a general rule, unless specifically noted by the insurer, two groups cannot be covered under one policy. The reason behind this is down to the two entities holding separate liabilities. This also includes liabilities towards each other. For example, a Choir operating out of a church hall has a loose wire trailing across the floor for a speaker / microphone. If a member of the public were to make a claim due to them tripping over this it potentially may not be covered given it was not caused by the church or its activities. Even if that person were to first make an allegation against the church, the church insurer would seek subrogation. Or, put simply, would approach the choir to reclaim the funds required for the claim.
By reviewing insurance each year, it will ensure i always receive the best terms
Many of those who deal with a group’s insurance policy may approach it as though it were their personal car or home policy. Such as reviewing, remarketing and changing insurers as by doing so each year they can bring the premium down.
This is often not the case and by doing can cause the ‘market to flood’ potentially resulting in insurers declining the opportunity to quote.
As brokers, we often feel that the best time to review the market for alternative quotations is either when: The terms you have received have had a somewhat significant increase applied or every three years just to ensure the terms you have are still competitive.
We do not require insurance as we are of no risk / low risk
The misconception is that groups often feel that they do not require insurance cover. Groups should approach insurance as a “should I” rather than “Do i”.
Whilst most groups (Except those who hold employees) do not legally have to obtain insurance it is often wise to cover a group from an unfortunate incident whereby someone suffers a loss. Whether that loss be an injury to a person or damage to property. By holding insurance it provides protection if someone is to bring a claim against them. Even by holding just the minimum levels of cover, it typically protects the group from situations resulting from an injury / damage to a third party.
By doing so, it can provide you with peace of mind that should an allegation be made against you then you have insurance cover to protect both the group and potentially yourself.
If you now have some queries towards any of these points or how they would affect your group then please do not hesitate to contact us.
Should you wish to use our specialist service for both advice and a range of quotations then please do not hesitate to complete our online inquiry form.
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