Insurance - Do you need it?

‘I would write the word “insure” upon the door of every cottage and upon the blotting book of every public man, because I am convinced, for sacrifices so small, families and estates can be protected against catastrophes which would otherwise smash them up forever.’

Winston Churchill was a passionate advocate of insurance. And with potential for the unlikely to happen at the most unexpected times, insurance should be a prime consideration for any organisation in the voluntary, community and social enterprise sector.  

There are over 9,000 community venues recognised as charities in England and Wales, with a combined annual income of around £0.25 billion. They are important hubs of community activity and events and need to be protected against the unexpected. It’s not just about bricks and mortar however. Any voluntary organisation or community group that operates, with or without premises, is vulnerable.

Do we need insurance?

The answer is probably ‘yes’.  Trustees have a duty to protect the assets of the charity. Although only employers’ liability and vehicle insurance are legal requirements, cover for any buildings and contents, along with public liability are prudent in protecting the charity and its assets. You may have different insurance needs depending on your activities.

• Public liability covers loss, injury or accident suffered by users of your service or facilities -even the delivery driver or postman.
• Product liability relates to accident or damage caused by services or facilities supplied by you
• Trustee liability has come under scrutiny, partly because of increasing awareness of responsibilities and liabilities. A key question is who protected by this insurance – the charity or the trustees?
• Vehicle insurance – operated by you or liability for those attending your premises
• Employer’s liability – The Employers' Liability (Compulsory Insurance) Act 1969 requires cover against claims for compensation for injuries caused on or off site.
• Professional indemnity - legal costs incurred in your defense, and costs that may be awarded if you are found to have provided inadequate advice or services.

You may have different insurance needs depending on your activities. Insurances are often packaged together, so it’s important to shop around and check exactly what is covered. If you work with others (such as hirers) you need to check if they have appropriate insurance cover and write this into any agreements.

Community Action Norfolk members can call 01603 881881 for a competitive quote from Anglia Farmers.

More information can be found from the Charity Commission.