An appropriate level of insurance is necessary for any voluntary or community

group. Any action, or failure to act, by an organisation is in practice the

responsibility of one or more individuals within the organisation. It is therefore

advisable to make sure that you have adequate insurance to cover the

organisation’s assets, the general public and your staff, committee members,

volunteers and members against any liability which they may incur while

carrying out the organisation’s work.

Whatever type of insurance you take out, it is essential that it covers you for

the right amount. If you are unsure how to calculate this, take advice from a

reputable insurance broker who understands your organisation and has

experience of your area of work.

Who can take out insurance?

If you are an unincorporated organisation, any insurance must be taken out in

the name of your committee members, but the proposal form should be

signed by one individual on behalf of the other committee members. If that

person leaves the organisation the insurance must be transferred to someone

else’s name.

Incorporated organisations can take out insurance in the name of the

organisation.

Types of cover

There are two types of insurance which are required by law:

against claims by workers for illness or injury caused by the organisations

negligence. There is a minimum statutory cover. The employer’s liability

insurance certificate must be prominently displayed in the workplace. All

certificates have to be kept for 40 years. Be aware that this insurance does

not usually cover volunteers, committee members, service users, consultants,

trainees or self-employed people, although some specialist policies will cover

volunteers. You will need public liability insurance to cover these groups. You

must have this to insure drivers against third party risks. It is probably worth

extending this insurance to cover all damage with a comprehensive policy. If

you have volunteer drivers using their own vehicles you must make sure their

vehicles have insurance cover for their volunteer use.

Other types of insurance may be required by a landlord, funder or local

authority, or because it is in the organisation’s best interest. These types of

insurance include:

damage caused to any member of the public as a result of the organisation’s

negligence. It will not cover injury or damages arising from negligence in the

course of providing any sort of professional service – see Professional

Indemnity Insurance below. Make sure that your cover includes volunteers as

it does not cover employees of the organisation.

responsibility or it may be taken care of by your landlord, in which case you

have the right to inspect the policy. If you own your premises, be aware that

under charity law there is a duty to protect a charity’s assets. A committee

which left a building uninsured could be seen as negligent in their duty. The

costs of re-building, including professional fees, and the costs of temporary

accommodation should be covered. Shop fronts may need special insurance.

that you keep the figure insured up to date and notify your insurers about any

shared equipment. The insurer may insist on you buying special locks or

alarms. To extend this insurance you may want to

technical equipment eg computers

injury or damages arising from negligence in the course of providing any sort

of professional service, for example giving advice or providing health

treatment, even if the service is free. This is when professional indemnity

insurance becomes necessary. It can be expensive, but some national

umbrella organisations have negotiated lower rates for members. It can be

extended to cover slander or libel which may be important for campaigning

organisations.

known as committee members) or directors against the risk of personal

liability arising from breach of trust and negligence to the organisation itself. It

does not insure against liability for the organisation’s debts, or negligence to

third parties.

There are many other types of cover which you may decide are relevant to

your assets and the type of work that you do. You may wish to seek the

advice of a reputable insurance broker who understands your particular

activities and risks.

More information and advice is also available from:

On the market

Please note that this is not a comprehensive list and inclusion on this list does

not imply a recommendation of these products. It is always advisable to get

more than one quote for insurance.

Access Insurance - 0870 241 2214.

Aon Risk Services - 0845 740 2003

Ecclesiastical Insurance Group - 08457773322

Endsleigh Insurance Brokers - 01242 866800

Keegan and Pennykid – 01312 256005

Kyle Insurance Brokers aka insureuk - 028 2565 2424

Ladbrook - 01909 565858

MIA General Insurance - phone 01438 739787

MCIS (for disability/care organisations) - 0121 233 2722

Stuart Alexander - 020 7335 0691/1621