Are you a Trustee of a Charity, Social Enterprise or CIC?

Trustees have overall control of a charity and are responsible for making sure it’s doing what it was set up to do and protect the future of the charity, also they have a legal duty to protect their charity’s resources and assets.  Were you aware of this?

Here are 10 questions to help you understand what you might need:

Why does a  charity need professional indemnity insurance?
If your charity is providing any professional service or provides advice then it can be held liable if any omissions or errors have been made or the charity is considered to have acted negligently which results in injury, loss, damage to a third party. These losses can be physical, mental, or financial. Professional indemnity covers you for legal costs in defence of alleged claims of providing incorrect advice or negligent services. It would also cover damages and compensation awarded against the charity.

Do you have volunteers or interact with the public?
Your organisation has a duty of care to third parties under various legislative 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 insurance purposes, volunteers are considered to be employees and therefore employers’ liability insurance will need to be in place.

If the charity has 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.

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.

Do you have buildings and contents that you want to protect?
When insuring the contents of a building, trustees need to verify that their policy sufficiently protects the charity’s property, and Charities should consider whether:
The policy covers the contents against theft?   If so, does the theft cover impose any specific security requirement, and if so, do the charity’s premises adhere to these?
Does the policy extend to include accidental damage?
Is the cover on a new-for-old basis?
Is there any equipment that you regularly take away from the premises? If so, is there appropriate cover in place for this?
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.

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.  You will also need to look at the value you can hold within the make and model of safe you have.

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.

What is Cyber Insurance?
If your charity holds clients, supporters or volunteer personal data, you will need Cyber Insurance, as people’s ability to gain access to that data is becoming more intelligent. More elaborate scams, phishing attempts, sending viruses, and social engineering allow access to your data.

If your charity falls victim to any of these and subsequently has a data breach, it could spell the end. The financial implications and the fines that are attached to data breaches could be crippling.

Your charity and the entirety of its future could be resting on how much you trust your staff. The most significant cyber threat to any business is its employee’s ability to spot scams and adhere to best practice around data security.

Are you responsible for premises which you hire out, to bring an income into the charity?
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. The cover does not apply to business or political hiring.

Other types of Charity Insurance to think about?
Fidelity Guarantee: Covers you for dishonest or criminal acts committed by your employees, trustees or volunteers.

Named Events: Insures costs and loss of income if a fundraising event is cancelled or an accident happens at one of these events.  All events will require a risk assessment to be completed.

Travel: Covers medical expenses, including emergency repatriation and other benefits including loss of baggage, cancellation and delay.


That’s why it makes sense to work with an Insurance Broker with specialist knowledge of the voluntary sector.

Our aim is to provide the not-for-profit sector with straightforward insurance solutions with a focus on achieving a competitive price, backed by great service and support from our experienced team of brokers. Our history of working with voluntary sector organisations means we are well placed to find a suitable insurance solution for you.   We can help you work through your risk register to determine what type of insurance cover is necessary for your organisation at a competitive price.