Trustees and management committee members have a duty to act in the best interests of their group. Before you make a decison about what insurance to purchase, you should be aware of all significant risks to your organisation. You can do this through a ‘Risk Assessment’.

Mandatory insurances

Certain types of insurance are mandatory irrespective of the specific activities of your organisation or how it is constituted.
These are:

• Employer's liability insurance - employer's liability insurance covers the employer against illness, injury or death to an employee occurring during the course of employment and arising as a result of a breach of a statutory duty (breach of health and safety legislation) or neglect.
• Third party insurance for vehicles kept on the road (Fully Comprehensive will give better cover)

Recommended insurances

In addition to the mandatory insurance, the management committee (or a designated staff member) should consider the following:

• Contents Insurance - this normally covers everything that would fall out of your building if you shook it upside down!
• Public Liability Cover against claims by third parties - this is insurance that protects the organisation against claims involving illness, injury or death, or damage to property caused by the neglect of the organisation or someone working for it.

Optional insurances

Management committees can also consider other forms of insurance but the Charity Commission advises that they should only do so where:

• The circumstances of the charity make it necessary or prudent
• The charity can afford the premiums without affecting the pursuit of its objects
• The trustees are advised (by their legal or other independent professional advisers) to have such insurance

Groups must review their insurance needs at least yearly and make sure they have the best deal.

Insurance of volunteers

The management committee may need to seek advice as to the rights and position of volunteers, which may or may not be the same as those of employees. The management committee should ensure that volunteers are appropriately covered by the usual types of insurance a group might buy, such as that for employers’ liability or public liability. The policy will need to be checked to see how it defines what the term ‘volunteer’ means for the purposes of that policy.

Finding the right insurance deal

Speak to a number of insurance providers. Comparing quotes will save money. Even though the insurance market has contracted, it is still a competitive market place. Look for no-claims discounts or loyalty discounts. Also network with colleagues and your national body (where appropriate) and find out who they have insured with.

Remember
To check the small print in any policy and try to understand the cover you have bought, fill out the forms carefully and review it annually.