Charities are a special kind of organisation. With the increase in privatisation and rising living costs across the UK, the work of non-profits has rarely been more important at home. And for those providing aid abroad, their humanitarian goals must be admired.
If only out of respect for intentions, it’s hard to imagine why anyone would do something that might financially damage a charity. However, claims are regularly raised against charitable organisations, both by those they are trying to help, and by members of the public.
What liability does a charity have?
The responsibilities which need to be covered by charity liability insurance are largely the same for non-profits as they are for commercial businesses. When it comes to the law, both kinds of group have exactly the same duty of care to their employees, community and the public.
When considering how to protect your organisation, be aware that not-for-profit insurance could cover public liability, employers’ liability, and – depending on how you fundraise – charity event insurance.
Do I need public liability insurance for an event?
Public liability (PL) insurance for a charity event isn’t a legal requirement, but considering the substantial risks associated with holding a fundraising activity with members of the public, it could be seen as beneficial.
This is particularly important for smaller charities, who may not regularly hold large events. Insurance for small charities and non-profit groups will cover the day-to-day activities and demands of your organisation but might not offer the level of cover you need for an occasion which involves large numbers of people and (potentially) rented space and equipment.
Say, for example, you held a fundraising auction and a guest tripped over items you had left in an unsuitable place. If that individual hurt themselves, their injury would be your responsibility and you would be liable if they decided to make a claim. Equally, if you damaged a rented space while installing furniture for an event, the owner of that space could rightfully seek compensation. Depending on your insurer, your small charity insurance might not provide enough cover for such a situation.
If you’re holding a charity-do, specialist charity event insurance will cover you for the unique circumstances of your event.
Specialist charity event insurance might include:
- Public liability cover
- Employers’ liability cover
- Cancellation and disruption insurance
- Property cover
- Liability for damage to venues
- Indemnity to venue owners or operators
What kinds of insurance do charities need?
The insurance package which a charity needs depends on the type and scope of its operations. But although the level of cover may vary, there are a few types of insurance that could always be included:
Employers’ liability – Liability insurance for voluntary groups does not cover your volunteers; employers’ liability is a legal requirement to protect those employed by you, even in a voluntary capacity.
Trustees’ insurance – Trustees’ insurance will help to make sure that your leadership team aren’t held personally liable for mistakes and accidents that happen within your charity.
Public liability insurance – Public liability insurance for non-profit organisations is a crucial way to protect the good work you do from being disrupted by unnecessary financial damage.
Charities hold an important place in society, and the work they do enriches the lives of many – so making sure they are able to continue making a difference is essential. Public Liability insurance is just one way of protecting them from harm. It not only covers the charity against claims, it ensures that anyone who suffers an injury or damage to their property as a result of the charity’s activities has access to compensation.
Charity public liability insurance is suitable for charities of all sizes and can protect it against commercial loss. For a tailored insurance quote, contact one of our brokers
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