Why do charities need insurance?
An injured customer
A customer visits your shop to browse the latest intake of items and trips on an uneven floorboard on their way out. Unfortunately, X-rays show the fall resulted in a broken wrist, meaning your customer is unable to work for at least six weeks. Due to this, they decide to claim against your charity. Having public liability as part of your charity insurance helps with defence costs and can even pay a resulting settlement.
Illness in the office
One of your employees begins to complain of respiratory problems that are exacerbated by simply coming into work. After investigating the issue, it emerges that your employee’s illness has been caused by cleaning products not being stored in the correct way. Even though this mishap may not be your fault, the individual could still take sick leave and file a negligence claim against your charity. For cases such as this, employers’ liability insurance helps to cover legal costs and compensation.
Volunteer mistake
One of your new volunteers is keen to get involved with organising a fundraising event and sets to work sending emails to gather interest and build excitement. Unfortunately, they accidentally attach confidential information to one of the email threads without prior consent, exposing your charity to risk. A breach of confidence complaint is filed against your organisation, forcing you into legal proceedings. By tailoring your charity insurance to include professional indemnity cover, you’ll be protected for court attendance and, if relevant, compensation payments.
What is included in insurance for charities?
Trustee liability insurance
Trustee liability insurance offers financial protection against several types of compensation claims made against charity trustees. In key posts, individuals experience a heightened level of responsibility and public accountability which carries a degree of personal risk. Trustee liability cover offers protection if a volunteer, service recipient or member of the public claims a trustee has acted wrongfully. Claims might involve breaches of duty, or even negligence – since settlements can be steep, this type of insurance is often important for charity trustees to have.
Property insurance
Where you operate from is the heartbeat of your charity, so protecting your premises with property or office insurance can provide a lifeline when things go wrong. For your charity to be able to help people each and every day, you need to have access to your building and equipment in full working order. Whether your charity is impacted by an overnight break-in, equipment breakdown or damage to the building itself, property insurance can quickly help to cover the cost of repairs and replacements.
Personal accident insurance
Helping people may have always been your ambition, that’s why you’ve set up a charitable organisation – but what happens if you’re unable to work? You might fall and break your ankle during a hiking trip just as a key employee sustains an injury on a skiing holiday, meaning you’re both unable to work for a while. When your charity relies on key people to function, you may benefit from the support of a personal accident policy built into your charity insurance.
Other relevant products for a tailored charity policy could include professional indemnity, public liability, and employers’ liability, which is sometimes a requirement. Available cover can also depend on the type of charity – speak to Hiscox about your charity to understand what’s available to you.
If you’re not sure what you need, tell us a little more about your charity or not-for-profit organisation. We’ll help you to build your quote and explore any other insurance needs.
Build my coverInsurance for charities: FAQs
What is trustee liability insurance?
A trustee liability policy is an insurance product designed to protect trustees of a charity or club. It can also provide cover for others such as governors and committee members.
This insurance helps cover the cost of defending or settling claims for trustees in several circumstances, including defamation charges or breaches of trust. Also covered are employee injury or death at work where the Health and Safety at Work Act 1974 or the Corporate Manslaughter and Homicide Act 2007 have been breached.
Head to the Hiscox trustee liability insurance page to learn more about what the cover involves.
Why do charities need employers’ liability insurance?
UK law (external link) dictates that many organisations which employ staff require employers’ liability insurance. This rule includes charities employing full-time staff and volunteers, so even if you only have one member of staff or a single volunteer, this could still apply to your organisation.
Working for a charity can be rewarding and volunteering is taken on with the best of intentions. However, anyone could encounter risks while carrying out their role – whether it’s a back injury from carrying boxes of leaflets, or eye strain from too much computer work. Employers’ liability helps to protect your charity.
Do charities need property insurance?
Yes, property cover might be an important product to build into your charity insurance – whether your organisation owns or rents its office buildings or support centres.
This place could be vulnerable to damage resulting from extreme weather, fire or a break-in by criminals, so buildings insurance can bring valuable reassurance if you own the premises, while office insurance can help if you rent. If such an event were to strike, this product funds repairs, investigations and emergency services costs, helping to reduce the cost in terms of both money and time. Safeguard the property within your premises - such as computers, documents and furniture - by adding office contents cover too.
Related articles and guides
What types of insurance do charities need?
No two charitable organisations are the same – that’s why we help you to tailor cover specific to your circumstances. Identify the types of insurance a charity might need here.
What’s the difference between a charity and a non-profit?
Struggling to distinguish between charities and non-profits is common – use this Hiscox guide to the difference between a charity and a non-profit to gain some clarity.
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