Charities that Hiscox covers
At Hiscox, we can offer cover whether you’re a charity or a not-for-profit organisation.
Many use the terms ‘charity’ and ‘not-for-profit organisation’ interchangeably, but there are key differences between them.1 (external link) Charities are a type of not-for-profit, but not every not-for-profit is a charity. While both operate without aiming to make a profit, their legal status, responsibilities, and the types of cover they may require can vary.
Charities
A charity is an organisation that is established for charitable purposes and provides a public benefit.2 (external link) Registered charities typically have specific regulatory obligations, such as filing annual returns with the Charity Commission (external link), and may require specialised cover, such as trustees and individual liability insurance, to protect against legal and financial risks.
Not-for-profit organisations
Not-for-profit organisations include a wider range of groups – such as community groups and other mission-driven entities – that don’t meet the legal criteria for charity status (external link) but may need similar protection.
Key insurance products for charities and non-profits
Different situations require specific insurance types. The cover your organisation may need depends on factors such as whether you employ staff, work with volunteers, or host public events. Our Hiscox experts can help assess your specific requirements.
Public liability insurance
Charities and non-profits often work directly with the public through events, services, or community programmes. Public liability insurance can help protect against claims if a member of the public is injured or their property is damaged due to organisational activities. This type of cover may be particularly important if your organisation hosts fundraising events or regularly interacts with the public.
Trustees and individual liability insurance
Trustees and senior managers may be held personally liable for governance decisions. While not legally required, trustees and individual liability insurance can help with claims if trustees are accused of negligence, breach of duty, or mismanagement.3 (external link) Even where trustees act with the best intentions, they may still face legal defence costs or compensation claims.
Employers' liability insurance
Charities with volunteers or paid staff are usually legally required to have employers’ liability insurance with a minimum cover of £5 million.4 (external link) This can help with compensation awards and legal defence costs if an employee or volunteer is injured or becomes ill due to their work for the charity.
Contents insurance
Contents insurance for not-for-profit organisations can help cover replacement costs for items kept and primarily used within the organisation’s premises if they are stolen, damaged, or lost. Items can include computers, furniture, or other specialist equipment.
Equipment insurance
Equipment insurance comes in different forms. Portable equipment insurance covers portable items that are primarily used outside an organisation’s premises, such as phones, laptops, and other mobile equipment. This may be valuable for charities and non-profits whose staff or volunteers regularly work off-site with essential equipment.
Equipment breakdown insurance is another optional add-on that covers the mechanical or electrical breakdown of equipment. It cannot be purchased without contents or portable equipment insurance.*
While you can purchase contents and portable equipment insurance together, both covers are also available on their own.*
Personal accident insurance
Personal accident insurance can provide financial support if employees are injured or become seriously ill. This insurance could include weekly benefits for temporary disablement, helping individuals while they recover, and capital benefits in the event of death or permanent disablement.
Legal protection insurance
Charities and non-profits can face challenges ranging from employment or contract disputes to tax enquiries. Legal protection insurance can help with legal and accountancy costs and expenses.
Cyber and data insurance
Charities and non-profits often store sensitive information about donors, beneficiaries, and volunteers. A data breach could result in significant costs and reputational damage. Cyber and data insurance may help cover the costs of investigations, notifying affected individuals, and regulatory responses. As cyber threats evolve, this cover can offer reassurance for organisations that rely on digital systems.
References
- https://www.gov.uk/hmrc-internal-manuals/vat-charities-manual/vchar2200
- https://www.gov.uk/government/publications/what-makes-a-charity-cc4/what-makes-a-charity-cc4
- https://www.charityexcellence.co.uk/charity-insurance-indemnity-liability/
- https://www.gov.uk/government/publications/charities-and-insurance-cc49/charities-and-insurance