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How to choose insurance for your charity

Here are 10 questions to help make buying insurance simple. These are taken from a guide produced by Zurich Insurance. Download the free PDF for full details.

1

Do you have volunteers or interact with the public?

Your organisation has a duty of care to third parties under various legislation acts. If your organisation interacts with third parties, including the public, other organisations, volunteers and service users, you should consider Public Liability cover. This provides cover if your organisation is found to be legally liable for accidental injury to a third party or damage to their property.

For example, if someone trips over a loose cable at your fundraising event and breaks their leg, you could be held legally responsible for compensation awards.

2

Do you have trustees that need indemnity protection?

If you have a board of trustees, committee members or directors, they could be held personally responsible for financial loss or reputational damage to your organisation if they act outside of their authority.

For example, if a trustee approves renovation work after the promise of a grant, which is then never received, the builders could sue the trustee(s) for payment. To protect against this, you should consider Directors & Officers cover (also known as Trustee Indemnity cover).

3

Do you have employees?

If you have employees, it is a legal requirement to have a minimum of £5,000,000 of Employers’ Liability cover. This protects you if you are found legally liable for injury (including illness and death) caused to an employee whilst they are carrying out their work duties. It also provides cover if you need to defend yourselves against actions taken for breaches of Health & Safety regulations.

4

Do you own or use motor vehicles?

Motor insurance is a legal requirement if your organisation owns or leases any motor vehicles. Options include Comprehensive, Third Party Fire and Theft and Third Party Only cover.

5

Are you responsible for premises which you hire out?

If you hire out your premises to private individuals, consider Hirers Liability cover. If the person or organisation hiring your premises doesn’t have their own Public Liability insurance, this cover will enable you to claim for the cost of repairs if they damage your property during the period of hire. It also protects the hirer if they cause personal injury to someone during the period of the hire. Cover does not apply to business or political hiring’s.

6

Do you have buildings and contents that you want to protect?

If you own (or are legally responsible for) a building, and assets within a building, you can insure these under Material Damage cover. You can purchase Buildings and Contents insurance to protect your assets from damage caused by (for example) fire, theft, accidental damage and damage by storm or flood.

7

Could your organisation still run if your buildings were damaged?

As well as protecting your buildings and contents, you may also wish to protect against costs or loss of income caused by damage to your buildings under Business Interruption cover.

8

Does your organisation handle money?

If you handle money, take money to the bank and/or if you have an overnight safe on your premises, consider Money cover. This will protect you if money is stolen whilst in the supervision of your employees or volunteers, in your safe, or in transit to the bank.

9

Could you need legal help?

If it is possible that you could have action brought against you in relation to employment disputes, discrimination or other legal actions, you might want to consider Legal Expenses cover.

10

Does your building have a boiler, lift or other plant equipment?

It is a legal requirement to have certain equipment inspected, such as lifts, at regular intervals (defined by the legislation). At Zurich Insurance, we can provide these inspections and then add Engineering Insurance cover. This protects you in the event that your equipment fails and causes damage to itself or damage to ‘own surrounding property’.

Further information

Given the varied nature of not-for-profit organisations, some additional cover may be required depending on the activities you run. These include cover for professional negligence, libel and slander, business travel, personal accident and acts of terrorism.

Please see our 10 questions to help make buying insurance simple for more information. Download the free PDF for full details.

Zurich is NCVO's trusted supplier for charity insurance.

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Page last edited Mar 07, 2019 History

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