Questions & Answers

What are some of the necessary insurance policies for my Organisation?

Employer’s Liability
Required by law. All employers must have a minimum insurance cover of £5m for injury or disease suffered by employees. Employers Liability is expensive but unavoidable

Public Liability
Not a legal requirement, but could save charities from paying out millions. It protects a charity from injury or damage to people or property, which can happen on its premises or away from them - at fundraising events, say. Check that volunteers are covered by this policy. It is advisable for most.

Motor Vehicle
For charities that own or operate motor vehicles, it is a legal requirement to have at least third party motor insurance to cover damage to other people or their property. Extras such as personal accident benefits can be included.

Building
Essential for charities that own buildings. Policies should cover fire, lightning, flooding or damage through theft. The insurance should cover costs such as repairs, demolition and fees for professionals such as architects or surveyors. It is expensive but essential

Contents
Covers the contents of a charity's operation, which could be anything from furniture and computers to museum pieces. It is not however legally required.

Legal Expenses
It is advisable for charities to take out this insurance to cover any costs that arise if they have to bring or defend legal cases. This might be needed if a member of staff starts an employment dispute or if there is an occupancy disagreement with a landlord. It is highly recommended

Trustee Indemnity
If a trustee makes a bad decision or breaches the charity's trust, this covers them from personal liability when legal claims are made. This is the only charity insurance that protects an individual trustee rather than the organisation.

Fidelity Guarantee
This insures a charity against any loss of cash or valuables caused by employee fraud or dishonesty. It can be extended to cover fraud and dishonesty by trustees and volunteers.

Loss of Money
Charities often handle cash from say fundraising activities, thus many insurers say this type of insurance is advisable. It covers a charity for loss of money in places such as a safe or in transit, which might not come under contents insurance.

Patron Death
Charities with patrons whose demise could affect their ability to raise funds might want to consider this type of insurance. An insurer might cover a certain amount of lost revenue up to £25,000. This type of insurance is more useful for those with high-profile or celebrity patrons. It is cheap but rarely needed

Kidnap and Ransom
Advisable for any charity sending employees overseas, particularly if they are going to dangerous countries. It will cover the costs of getting employees back, including translators, private investigators and ransoms. It is expensive. It depends on the country and salary of the person concerned. Could cost thousands of pounds. It might be important for some organisations!