Insurance can be confusing. Subsequently, it can be difficult to understand covers that you may be legally required to hold, vs those that are needed to protect your businesses. There are also additional covers you may need to protect against those business specific risks that you face. So, how do you know what insurance a charity needs?
At Hensure, we offer a free business insurance check, to review the cover that you currently have in place, and subsequently identify any risks that we feel could leave your business exposed.
Our experienced team can also advise on the covers that you should consider, and why these would be suitable.
How many insurance covers does a charity require?
For a charity, there are seven main areas of cover that may be required:
- Public Liability
- Employers Liability
- Material Damage
- Trustee Liability
- Cyber Liability
- Fidelity Indemnity
- Professional Indemnity
Public Liability
In fact, Public Liability cover is one of the most common areas of insurance needed by charities. It will provide cover for if anyone gets injured on your premises, or if anybody working with the charity injures someone or damages any third-party property.
Employers Liability
This cover will usually come alongside the public liability and so is a very common cover. This will include cover for your employees/volunteers, should they become injured whilst working for the charity. If you do have volunteers, then by law, you do need to carry this cover.
Material Damage
This area of cover can be included to cover equipment, stock etc. owned by the charity and can be covered within a particular premises only, or away if the items are portable.
Trustee Liability
Trustee Liability is an often-overlooked area of cover and will be crucial, especially for slightly larger charities. The purpose of this cover is to protect the trustees of the charity in their professional capacity, should they then be accused of operating the charity in a way that does not reflect the interests of the charity and its cause.
Cyber Liability
This area of cover can protect you from losses caused by a cyber incident. This can be your own losses, losses caused to a 3rd party by your actions/non-actions, phishing threats (social engineers) and cyber crime.
Fidelity Indemnity
This cover is important for charities which especially operate on a cash basis, because it provides cover for theft by employees/ volunteers.
Professional Indemnity
A slightly rarer cover for a charity to hold is Professional Indemnity. However, this would be crucial for a charity who offer professional advice/ services, such as counselling, in the case that a claim be made against you for negligent advice.
To speak to one of our experienced team about the right insurance package for your charity, contact us today.
