Norris & Fisher specialise in insurance for charities and voluntary groups and we are often asked what insurances are advisable – particularly for small groups where finances are at a premium.
There are certain forms of insurance which are compulsory at law – motor insurance is an obvious one. The other one which many people are aware of is Employers’ Liability insurance. This is insurance to provide compensation if an employee is injured in the course of their work.
The definition of an employee varies from insurer to insurer but it can be wide-ranging and include not only employees but volunteers and trustees. Depending upon this definition, it may well be that your group needs to have Employers’ Liability insurance. It is normally purchased with Public Liability cover.
Public Liability insurance is cover to protect you or your group against claims made by other parties for injury or property damage. So if someone were to be injured as a result of your activities – for example if you had a display stand at a fund-raising event and it fell over and injured a passer-by – then the Public Liability insurers would deal with the claim and pay any compensation which was awarded.
Surprisingly to some, Public Liability insurance is not compulsory. Nevertheless, it is a form of cover that you would be best to take out in case a claim were made against you.
The other main form of insurance that is strongly recommended for a charity is Trustees Indemnity cover. This protects the personal assets of the trustees (and other members of the organisation) in the event of a “wrongful act” – normally a breach of trust or a breach of duty. Where a third party suffers financial loss as a result of such a breach, trustees can be liable up to the full extent of their wealth. Trustees Indemnity insurance covers both the individual and the voluntary group in the event that the organisation is sued.
If your group owns any property then you may wish to insure it against being stolen or damaged. “All Risks” cover can be arranged where property is not simply kept at one location – a laptop computer, for example.
Where to go to get the cover?
There are many ways of arranging insurance – many people take out cover over the internet. However, if it is advice you are looking for then you would be best to approach an insurance broker. To find one that is local to you, you can use the “Find A Broker” section on the British Insurance Brokers Association website –http://www.biba.org.uk/ConsumerHome.aspx
Brokers will deal with a number of insurers and will make recommendations to suit your circumstances.