What does Charity and Not-for-Profit Insurance cover?

Public liability insurance protects your charity or not-for-profit organisation against the potential cost of compensation claims from members of the public who are injured or whose personal property is damaged as a result of your activities. It’s important that your policy provides cover for all the activities and events that you are running, so keeping in touch with your broker and making your insurance provider aware of your activities is vital and your charity insurance adviser can help to advise you on the risks you may face.

Although there’s no legal requirement for a charity to have professional indemnity insurance, it is something you should consider. It protects against the costs of defending allegations of wrongdoing, providing improper advice or negligent services that result in loss, injury or damage to a third party. This can include any detrimental physical, mental, and financial impact caused by the negligence.

It’s often overlooked, but trustees, directors, officers, committee members and governors can be personally held responsible for decisions and actions made on behalf of their organisation. A trustee liability insurance policy works similarly to professional indemnity insurance. It protects the trustees against the financial impact of legal claims for a breach of trust or duty and negligence in their capacity as a trustee. These claims could be made by third parties, such as members of the public or the charity itself. Without trustee liability insurance in place, the legal costs to defend such a claim would have to be paid personally by the trustee(s) involved.

Your charity may have a programme of annual events which happen at the same time each year, or they may have different activities which happen depending on your needs and resources at the time. It’s important that you have the right insurance for your event, and your charity insurance adviser can help advise you on what is most appropriate for your event.

Whether it’s a fun run, a book sale, or a concert, all sorts of things can and do go wrong at charitable events. Public liability insurance protects your charity or not-for-profit organisation against the potential cost of compensation claims from members of the public who are injured or whose personal property is damaged as a result of your charitable event. It’s important that your policy provides adequate cover for all the events you are running, and your charity insurance adviser can help advise you on the risks you may face.