Across the market there are many different forms of insurance offering cover to charities, so it is important for your organisation to ensure the cover in place protects against all potential risks that could arise from your organisation’s activities.
All charities are different in many ways and finding the correct cover can be difficult, especially if you are unsure of the risks that need to be covered. It is important to think of everything however unlikely, for instance considering your property being damaged by extreme weather or a negligence claim. Although a charity or non-profit organisation is different the need to protect against the unexpected is still needed just like a business.
We are a specialist charity insurance broker, and this means we fully understand that charities, social enterprises, non profit organisations have many things to do on a regular basis. We aim to create an easier process for all, so here are our top tips on things to consider when your insurance policy is ready for renewal. Here are some elements of cover that are either common or protect against emerging risks. This list is far from comprehensive but focusses on some particular themes.
During the pandemic many organisations found themselves using new systems and technologies to ensure they could keep in touch and up to date. It is very important to consider client data when looking at Cyber Insurance. If you are storing any date from name and address to medical information or bank details, it is crucial to have safeguarding procedures in place.
In the event of a cyber attack your charitable activities could be affected but not only that, it could have a detrimental effect on your organisation’s positive reputation. Introducing Cyber Liability Insurance will give you cover for loss of income, legal protection and the ability to claim compensation following a cyber attack, social engineering or phishing attack.
Business Interruption Insurance
This type of insurance has been created to cover loss of income and consequential costs that occur due to an incident interrupting or interfering with the normal running of your operation. This could be a fire, Flood, Storm, etc. This area of cover is very important to consider as without it certain events could have a detrimental impact on the organisations continued operation. Within this cover damage to the property will be covered but reading the small print or obtaining advice is a good idea as there are exclusions to consider. This is the area of cover that came under dispute for many insurers in the recent pandemic and all of the policies we work with now exclude cover for pandemic related interruption.
Events and fundraising are fundamental parts of a non-profit organisation. Thankfully after a long two years public events are back and in full force! This being said, it is critical that these events have the correct cover, whether it be a raffle, sports match, carnival, fayre, bake sale etc. It is important to ensure the organisation and attendees are covered against potential risks that come with holding a public event.
Charity Event Insurance provides cover for cancellation of the event or if it is to be restricted or cut short. Within this it covers Public Liability, protecting the organisation against third party claims of illness or injury. Again, Covid related cancellations costs are not covered in the general market.
It is common for accidents and injuries to happen. It is also unfortunately common for damage to be caused to property. This is even more common if you are holding a large event, resulting in lots of volunteers and attendees present. Public Liability is not a legal requirement for charity and non-profit events, however considering this and thinking of protecting the organisation from costly compensation claims is very important.
It is also important to check this cover in respect of how abuse allegations are catered for. Some insurer exclude cover, some include it and have conditions and understanding the protection you have historically is very important to making sure that your current policy is appropriate.
Employers’ Liability Insurance
At the heart and sole of all charity work is the people. If the organisation has just one employee it must have Employers Liability Insurance and this is a legal requirement. A hefty fine of up to £2,500 per day can be enforced on the charity for the period you are not properly insured.
Volunteers generally also fall into the Employers Liability insurance cover with the vast majority of insurers. Before your insurance is due to renew it could be worth carrying out a more up to date risk assessment for all activities that your volunteers are participating in or due to participate in. This will give you a more accurate view of the insurance required for the organisation.
The Right Charity Insurance Partner
For a Charity, non profit organisation or social enterprise to really get the best value out of their insurance it is important to work with a broker that truly appreciates and understands the needs, the way the organisation operates, their activities and the risk they face. Ladbrook Insurance was founded in 2000 to serve the third sector, we have helped organise charity insurance for thousands of non-profit organisations. We are Independent. We are not tied to a single insurer and in fact place business with over 30 different carriers, including the leading charity insurance companies. We offer advice which means we can discuss and recommend the appropriate products for your organisation. We take a highly personal approach. Try Ladbrook for your charity insurance and you will find yourself working with a dedicated account handler who will come and see you if you would like that support. An ethical approach underpins everything we do. We believe in conducting business, the right way and publish and constantly update our ethical policy.
Our team of account handlers, admin and support have the experience and passion to provide advice and solutions for charities and non-profits of all areas and sizes, so for more information on how we can assist your organisation, please give us a call on 019090565858. We are always happy to have a chat and get to know you more.
