Insurance Policies
How do you mitigate against risks and ensure that users, employees and the public are protected and your service is not harmed?
Are you covered?
A key aspect of running an organisation and delivering services and activities is the evaluation and consideration of the risks pertaining to those activities and responding appropriately to minimise the risks involved.
This should mean investigating and obtaining the required insurance cover for such activities to enable you to run a good service but also to demonstrate a professional approach to how you run and manage your organisation.
The number and type of policies that you will need depends largely on the kind of activities and services that you provide and the associated risks. It is worth noting that certain insurance policies are a legal requirement and therefore compulsory, and some will be mandatory if you belong to a membership network or if you apply to some Quality Assurance Standards, for example the Quality Mark Standard.
Remember that an insurance cover is there to offer protection and to take the strain should things go wrong. It can also increase confidence in using your services and the integrity of the organisation.
The following are just some of the insurances that are available and which might be pertinent to the services and activities you deliver:
Employer’s Liability Insurance
Employer’s liability insurance provides compensation for your employees including those undertaking study or work experience, if they are injured through carrying out duties for the organisation. This insurance is a legal requirement for organisations employing staff under a contract of service or apprenticeship. It is also a legal requirement that the Employers Liability Insurance Certificate is displayed prominently at the workplace.
Public liability insurance
This relates to people that come in contact with you as part of delivering your service or activities, including visitors to your premises, clients or beneficiaries. Under this policy you may or may not include volunteers depending on whether you use volunteers in the organisation. You should let the insurance provider know if you want volunteers included. Public Liability will cover accidental damage to third-party property, including damage caused during outreach support to a client’s home, as well as compensation for injury to third parties where you are at fault. This policy is a legal requirement.
What is not covered: Injury to employees due to the employer’s negligence or injury, and damage or loss caused by providing advice or professional services are not covered under this policy.
Professional indemnity insurance
If you offer legal advice service to members of the public then you should strongly consider taking out professional indemnity insurance. Although not a legal requirement the insurance will cover an organisation’s staff, including volunteers who give advice, for neglect error or omission which gives rise to a claim. Depending on whether you are a member of an advice network it may be necessary to have professional indemnity insurance as a condition of membership. Some umbrella advice organisations, for example Advice UK provide cover for this area of work, although you would need to be a member to benefit from a cheaper cover. It is worth contacting your existing insurer to find out if they can provide a cheaper cover.
Trustee Indemnity Insurance
This type of policy offers protection to trustees for personal liability when a claim is made against them either by a third party or the organisation, including staff or volunteers. However trustees should have acted honestly and reasonably. To benefit from this policy trustees would need the necessary authorisation or power from their governing document, and where this is not available or is forbidden, an order or permission from the Charity Commission.
Buildings insurance
If you own your premises or any other building, it is advisable that you insure against any damage or eventuality, as the cost of rebuilding could be prohibitive. It is not a legal requirement but the trustees of a registered charity, who have a statutory duty to safeguard the charity’s assets, could be deemed to be negligent if they did not insure the buildings they own. Ensure you get advice and that you obtain adequate cover, including cover for temporary accommodation and professional fees should re-building work become necessary.
Other Insurance to consider
Contents insurance
This gives cover against fire, theft or damage and can include items that you use away from the office to effect work elsewhere, for example outreach support or to deliver events. It is advisable that you keep an up-to-date list of the contents that are covered and review the list and amount insured annually.
Money Insurance
Insures against any loss or damage to money or related items in your premises.
Accidental damage
Provides cover for accidental damage to property but can be expensive.
Motor Vehicle Insurance
If your organisation owns and/or operates a vehicle used as part of your service provision it should by law be insured.
Obtaining Insurance Cover
You can arrange insurance cover directly from an insurance company or from a broker [a broker markets a range of products from different companies and should in theory be able to obtain for you the best deal based on your requirements, from available products]. It is also advisable to shop around to find the best deal. If you already have insurance cover with a particular company contact them to find out whether they can either match a quote from a different company or give you a better deal – as an existing customer.
Voluntary Sector Products
The National Council for Voluntary Organisations and Advice UK are two voluntary sector umbrella organisations providing insurance services for the voluntary sector. A number of insurance companies also specialise in products for the voluntary sector, including Keegan & Pennykid (Insurance Brokers) Ltd.
Be-aware
- Make sure you fully understand your policy and always read the small print.
- Make sure that your organisation has the right amount of cover as this may affect whether you receive any payment or the amount that you receive, in the event of a claim.
- Inform your insurance company immediately of any facts or changes relevant to your policy.
- Providing inaccurate information may invalidate your policy.
Relevant links
Charity Commission information sheet on trustee insurance
