Charity Insurance; Covering the risks faced by Charities, Voluntary Organisations and Community Groups.
The importance of the voluntary sector to our local communities cannot be overstated and in an era of cut-backs and the Big Society its impacts on our lives will continue to grow. Services that many people rely on are provided by voluntary groups and charities. These can range from village halls, play-groups, local interest groups and counselling groups to care homes, day centres, specialist education centres and medical research organisations to name a few.
The wide ranging services that charities and other voluntary groups provide means that there is no “one-size fits all” approach to risk and charity insurance. When arranging Charity Insurance you need to pay particular attention to:
The Business Description
The insurance company needs to be aware of all of the organisations activities. If there is any doubt as to whether an activity is covered then declare it to the insurer, as when it comes to charity insurance it is always best to be safe than sorry.
The Cover Extensions
Public Liability insurance indemnifies the organisation in respect of a claims brought against it in respect of injury to others or damage to their property. Different insurers have different attitudes to risks such as abuse and treatment so organisations working with children, vulnerable adults or providing an element of care should check their policy carefully to see how their Insurers deal with these areas of cover.
Organisations that are providing any element of counselling or advice should consider whether they need Professional Indemnity as part of their charity insurance package. A standard Public Liability policy may not respond to a claim arising from these professional services.
Those running or responsible for a charity, community group or other voluntary organisation can be responsible themselves for the actions of both themselves and the organisation. Trustees Liability covers the personal liability of trustees, officers, employees or voluntary workers arising from errors or omissions they make in the management and administration of the charity
Many Insurers deal with charity insurance on a package basis and issue a statement of facts rather than asking the proposer to complete a proposal form. Whilst there is nothing wrong at all with this approach it is important to make sure that you comply with all the assumptions within the statement.