Types of Cover
Arranging charity insurance cover for your charity or organisation can be a daunting task with some insurers - but not us. Here at Alan & Thomas, we aim to make the process as easy as possible for you. Knowing what charity insurance cover you need and what it protects you against can be confusing, which is why our expert charity insurance advisers will guide you through the process every step of the way.
To give you an idea of what types of cover are available, a number of different policies are listed below for your information. Depending on the type of charity you operate, you may need a number of these policies to ensure you are fully protected against all eventualities. With headquarters in Poole, Dorset and three further offices in Gillingham, Dorchester and Frome, Alan & Thomas are perfectly placed to help you with all our charity insurance needs. For over thirty years, we have helped a wide variety of charities of all types and sizes seek professional advice on their risk management procedures and charity insurance programme. We ensure that your day to day operations are fully covered and are always on hand to answer any queries you may have, at any time.
Here at Alan & Thomas, we specialise in arranging tailored insurance programmes for charities and organisations including voluntary sector, not-for-profit groups, community groups, community interest companies and social enterprises.
If through the activities of your organisation you come into contact with third parties, you should consider having public liability insurance in place. This cover will protect your organisation against any claims which could be made against you for compensation for accidental injury to third parties or accidental damage to property, where you may be deemed negligent. If a claim is successful, you could be liable to pay any compensation awarded. Having public liability insurance would mean that your insurer would pay the compensation award and associated legal costs. Without cover in place, the legal fees alone could cost your organisation thousands of pounds.
For example, if you are holding an event at your premises and a member of the public slips on a wet floor, they could accuse you of poor building maintenance and subsequently bring a successful claim against you.
If you employ people in any capacity (paid or unpaid), you are responsible for the health and safety of them while they are at work. As an employer, you are required by law to have employers’ liability insurance in place. Having employers’ liability insurance in place will enable you to meet the cost of compensation for your employees’ injuries or illness in circumstances where you are held legally liable.
For example, if an employee tripped and fell on your premises and injured themselves and went on to prosecute your organisation for a breach of health and safety legislation and you were found guilty of negligence, the policy would pay any compensation awarded to the employee.
Trustees & Directors Indemnity
If your organisation has trustees or directors, you should give serious consideration to protecting them and their personal wealth as a result of any claims being brought against them due to an unintentional error in their role which leads to the financial loss of a third party. This insurance also covers the legal costs and expenses of defending any such claims.
For example, you may employ a contractor to carry out some remedial work at your premises on the agreement that a third party will fund the work. If that third party fails to issue funds and you are unable to pay for the work, the contractor may sue your trustees for breach of contract.
This insurance covers your buildings, general contents (including any stock), computer equipment, tenant improvements and glass (for which you are responsible) against accidental damage (including theft) whilst on your organisation's premises.
For example, you would be covered in the event that your premises were flooded and you needed to replace items of furniture and equipment, as well as making alterations to the exterior of the building.
Specified All Risks
You can also choose a specified all risks cover, which will provide insurance cover for items whilst away from your organisation’s premises. Examples may include laptop computers, mobile phones, promotional brochures or other business equipment. Cover can be arranged to cover items in Europe or Worldwide.
For example, if a laptop computer was dropped whilst at another location, your insurer would reimburse you for the cost of replacing it.
Interruption insurance is taken out to cover your organisation if you are unable to partially or fully carry out your day-to-day activities and suffer a loss of revenue caused by damage to your premises or those surrounding you, failure of public utilities, discovery of vermin or pests, specified diseases, food poisoning, murder or suicide.
For example, your premises may be damaged by fire. The granting of planning permission to rebuild may take six months to be granted. During this time, you may have to rent a temporary office, purchase new computer equipment or cancel any meetings or events due to be held at your premises. With full interruption cover you would receive compensation for each of these areas.
If you attend events or exhibitions to promote your organisation, cover can be organised for event cancellation, liabilities for employees, volunteers and the public, as well as equipment away from your premises and while in transit.
For example, you may be exhibiting at a national event to promote your charity and one of the overhead lights on your display stand falls and injures a passing member of the public. They could then sue you for personal injury arising from your failure to secure the light fitting properly. This cover would pay your legal costs and expenses, as well as any compensation awarded to the claimant.
Money & Personal Accident Assault
Any charity money that is lost or stolen from your premises, your home, an employee’s home or whilst in transit will be covered by this policy. This includes cash, cheques, postage stamps and certain other negotiable documents. Compensation will also be provided should an employee sustain an injury during a theft or attempted theft of money.
For example, if an employee was assaulted whilst taking donations to the bank, this policy would pay compensation to the organisation or the employee.
Most organisations rely on a computer system to successfully function. If your computer system and software is damaged and/or data lost, it could significantly interrupt your day to day activities. Computer cover is available to assist in these circumstances. Policy cover is more comprehensive than standard All Risks insurance and extends to include reinstatement of data and increases in costs of working.
Having a computer cover policy in place will help you to get your organisation up and running again as quickly as possible following loss, damage or breakdown of computer systems.
For example, you may have a volunteer working in your office who is unfamiliar with your standard office procedures and fails to back up the files leading to a complete loss of all your data or your firewall may fail and your stored data becomes corrupted.
With so much legislation in place these days connected to employment, any breach can lead to an employee, current, former or potential, bringing a case against your organisation. Having Legal Expenses insurance covers your organisation for legal fees, compensation awards or appeal costs you may incur during an employment dispute.
For example, if an employee is dismissed from your organisation and you are found not to have followed the correct disciplinary procedure, they could bring a claim against you for wrongful dismissal. The costs of defending the claim would be covered by this insurance.
If an employee, trustee or volunteer covered by the Personal Accident policy was to suffer a bodily injury from an accident or assault whilst at work resulting in temporary or permanent disablement or death, this cover will provide a financial payment to your organisation. This can be used to help aid their recovery or cover their absence.
For example, if an employee suffers an accident while at work and this results in them being unable to attend and carry out their duties for six months, Personal Accident insurance would make regular payments during the time that they are unable to work. A lump sum payment can be made should the individual suffer a serious injury or permanent disability.
This insurance protects your organisation against the loss of money, goods or property, which you may suffer as a result of a dishonest or fraudulent act by an employee or volunteer.
For example, an audit of your accounts uncovers an anomaly which is then traced back to an employee of the organisation who had been taking funds for their own use. This policy would pay out if you are unable to recover the funds.
If your organisation provides advice and guidance to others, you should consider including Professional Indemnity insurance cover in your programme of insurance. This would cover the cost of defending your organisation against allegations of professional negligence, such as giving poor or incorrect advice to a user of your services.
For example, if someone was undergoing counselling with your charity and they make a claim for personal injury, property damage or financial loss against you as a result of incorrect advice you gave, having this insurance in place will cover any compensation awarded to them if the claim is successful. The policy can also include associated legal costs.
If you have vehicles that are used by your employees, trustees or volunteers for business on behalf of your organisation, you will need to have cover in place. There are three types of cover – comprehensive; third party, fire and theft and third party only.
For example, you are exhibiting at a local charity event and your employees need to travel to the location. If they were involved in a road traffic accident, this insurance would cover you for any damage to the vehicle and any compensation awarded to the driver and/or passengers should they sustain a personal injury.
If your employees, trustees or volunteers travel throughout the UK and abroad on charity business, cover can be organised to include cancellation and delays, medical emergencies, equipment and possessions.
For example, one of your trustees may be taking a trip abroad to meet with a partner charity. They arrive at the airport and the flight has been cancelled until the following day due to bad weather. This cover would pay for any overnight hotel stay and the cost of a new flight ticket.
This cover provides organisations with protection against financial loss resulting from the loss of personal and/or charity data. This could be the loss of a single laptop or file to the hacking of your organisation’s website or network. If your organisation handles data – whether relating to employees, volunteers, donors, suppliers or other partners – you are obliged to take effective measures to ensure that data is safe and secure. Theft of such data from your organisation’s electronic system could result in regulatory investigations and claims as a result of breaches of data protection and privacy laws.
For example, if one of your employees had their car broken into and their laptop was stolen which contained your charity database, this cover would compensate you for replacing the laptop and managing any issues that subsequently arise from the breach of data protection.
Why Choose Alan & Thomas?
- Top 100 UK independent broker* with Chartered Insurance Broker status
- Free no obligation review and quotation
- Talk to a dedicated insurance expert to guide you through the process
- Bespoke levels of cover tailored to your individual requirements
- Competitive premiums underwritten by the UK's leading insurers
- Dedicated in-house claims team who will deal with any claim on your behalf
- Payment of premium by monthly instalment available (subject to status)
- Free access to online risk management services