Why do not-for-profit organisations need insurance?
An injury at your non-profit club
In the field or in the office, there’s always a risk that a member of the public could be injured, whether your organisation is at fault or not. For example, a visitor to one of your village fairs may trip and fall over a tent wire, causing a sprained ankle. They decide to make a claim against you, which may cost you time, money and possibly the good reputation your charity has earned.
Public liability insurance for not-for-profit organisations can cover you for legal claims made by members of the public. So you can enjoy your events without worry.
Complaints against trustees
You might be challenged on the work you deliver – it could be that one of your trustees makes a mistake or provides incorrect advice. In this case, a service user might report a breach of duty or even negligence. No matter who’s at fault, if someone brings a claim against your non-profit organisation, trustee liability insurance can help protect you against these claims.
Trustee liability is specially tailored to cover you if you oversee any non-profit group – you might be a trustee, director, governor, committee member or an officer.
An overnight theft
You run a successful debt helpline and spend your days helping people out of tricky situations. But you never expected to be in one yourself. One morning, you open the office to find there’s been a break-in, and a lot of valuable electrical equipment is gone. Because of this, you may have to delay or cancel appointments, which could cost you money and your reputation.
If your not-for-profit group has comprehensive contents insurance in place, it could help to cover the costs of repairs or replacements and get you back on track.
What insurance is available for not-for-profit organisations?
At Hiscox, we can insure a wide range of not-for-profit and non-profit organisations. However, the exact insurance available to your organisation will depend on your niche. If you have any questions about what cover may be best for you, please give us a call.
Public liability insurance
Whether you’re at an event surrounded by the public or are visiting someone you work with – you’re working with people. Public liability insurance provides protection for non-profit organisations by stepping in if a member of the public makes a public liability claim against you.
For example, they may state that they’ve been injured or their property was damaged because of your services, or by actions carried out by an employee. It can help cover compensation payouts and legal expenses.
Trustee liability insurance
If you’re a charity or not-for-profit group, trustee liability insurance can help you to deal with any compensation claims that arise if you, or a lead in your organisation, get it wrong. A service user may accuse you of negligence or defamation, or you may face prosecution for how the organisation operates.
Trustee liability insurance is similar to directors’ and officers’ liability, or management liability, though specifically tailored to the charity sector. Whether the claim is justified or not, we’ll be there for you.
Employers' liability insurance
Employers' liability insurance is often a legal requirement (external link) for businesses – including not-for-profit charities and organisations. It can also apply even if you hire volunteers. It’s there to help cover compensation costs if an employee claims they were injured or fell ill because of the work they do for you.
You can’t watch everyone all the time. Even if someone’s only helping out at the weekend, if they feel you’re to blame for their accident, you could face legal action.
As a not-for-profit organisation, further insurance types could help you keep the wheels turning. For example, business contents insurance, portable equipment insurance, equipment breakdown insurance, professional indemnity insurance, cyber insurance and legal protection insurance could all help you stay on track should issues arise.
These are just some of the types of insurance for not-for-profit organisations we offer. Tell us more about what you do and we can build a policy that’s tailored to the needs of your business.
Build my coverInsurance for not-for-profit organisations: FAQs
Do not-for-profits need public liability insurance?
Not-for-profits can face similar risks to limited companies, depending on how your organisation works. If this is the case, you might feel public liability insurance for non-profit organisations could be worthwhile to help with public liability claims made against you. This type of cover can be especially relevant if you frequently work with or around the public. However, public liability isn’t a legal requirement, unlike employers’ liability, which usually is.
What’s the difference between management liability and professional indemnity insurance?
For non-profit organisations, management liability insurance (otherwise known as trustee liability insurance) helps to protect people with responsibility from claims made against them. For example, if trustees, managers and directors breach their responsibilities or offer poor advice. Professional indemnity insurance protects against the same claims when they’re made against your organisation as a whole.
Related articles and guides
What’s the difference between a charity and a non-profit?
Understand the difference between a charity and a non-profit organisation and what this could mean for your insurance needs.
Why trustees’ insurance is important
Find out why it’s important to have insurance in place as a trustee and how to implement the right policy in your charity.
What is cash flow?
Learn more about cash flow, what it entails, how to improve it, and how to better manage your money as an organisation.