Buying Charity Insurance: Top Ten Tips

1: Obtain a knowledgeable referral

Talk to and obtain information about who to buy charity insurance from. If you or your organisation has little experience or understanding of insurance then you need to talk to somebody who has or who knows where to go.

2: Be wary of direct insurers

A direct insurer can only offer from their one range of products. They often use call centres so that you speak to a different person each time you contact them, which might hinder your charity getting good continuous advice and service. Instead get to know a specialist charity broker who will have a range of insurance companies to approach.

3: Use a specialist broker

Voluntary sector organisations are not properly understood by most insurance companies and insurance brokers. A specialist broker working with the voluntary sector will have empathy with your situation and should provide ‘best advice’.

4: Consider which insurance covers your charity needs

Some organisations purchase insurance that they do not require. For example, if you do not provide advice then you are unlikely to need professional indemnity insurance.  However, have you considered risks to your trustees or management board?

5: Cheapest is not always best

Obtaining sufficient funding is as big a problem as it has ever been, so many charity organisations seek the lowest price for their insurances. Insurance is about peace of mind and paying out claims. The right insurance cover to meet your needs is far more important than low cost insurance that does not pay out in the event of a claim.

6: Identify, manage and reduce risk

You can obtain more competitive insurance premiums by demonstrating to an insurer how you manage or reduce risk. Tell your insurers that you complete proper risk assessment and tell them that you avoid certain hazardous activities. Demonstrate your professionalism in managing your organisation.

7: Notify possible claims early

Too many organisation have notified their insurers of a loss as an afterthought. Insurance companies need to be notified as soon as possible if a loss has occurred. Otherwise, an otherwise valid claim could be refused.

8: Review your insurances regularly

Many just renew their insurances without checking sums insured, level of cover or range of activities. If you do not keep your insurer up to date with what you are doing, they will turn down a claim. Keep them up to date with what you are doing.

9: Insurance Officer

Administration officers, whether paid or unpaid, move on to other things. Somebody new in your organisation tasked with looking after insurance needs to work hard at getting to grips with the insurance. Make sure that they make early contact with your insurance broker, allowing that broker to establish a relationship and understanding.

10: How ethical is your supplier of insurance?

Some claim to have ethical policies, some do not bother. A good supplier of insurance to the voluntary sector should have some sort of declared attitude as this is, quite correctly, a very important issue to very many third sector organisations.