18th Jul 2019

Did you know that charity trustees have a legal duty to protect their charity’s assets and resources?

We know that all charities face risks and insurance is often an appropriate way of protecting against these risks, but many charities are under insured.

Ensuring you have the right level of insurance removes the possibility of trustees being personally liable for under-insured charity assets.  It also prevents problems when you need to make a claim.

Getting the right level of insurance depends on the makeup of your organisation and the value of its assets for example:

  • Does your charity have property?
  • Does it have equipment?
  • Paid staff?
  • Volunteers?
  • Vehicles?

You may also have heard insurance terms such as: public liability, employers liability, trustee indemnity, professional indemnity, building and contents insurance, insurance for events…the list goes on, but what does it all mean and how do you know what’s right for your organisation?

Our advice is to seek proper independent professional advice from insurance brokers who have expertise in working with charities.  They will ask you about your organisation and help you get the right level of cover you need. Many also have additional services that will help ensure you get the right level of cover.

For example: Allied Westminster, one of leading insurance providers for village halls, can produce a detailed valuation report showing appropriate sums for all assets.  This service is available free if you are a customer, and heavily subsidised if you’re not. 

Having the right level of cover will prevent a lot of difficulties when you need to claim.  It can also help to reduce the cost of your insurance if you find you have been over insured.

The British Insurance Brokers’ Association (link below) is a good place to start to find a broker that can help you and provide independent advice (link below)


Further information about how to insure your charity can also be found at the Charity Commission: https://www.gov.uk/guidance/how-to-insure-your-charity

And don’t forget our Communities Team is always on hand for advice and support, so please don’t hesitate to get in touch:

Telephone: 01388 742040

Email: info@durhamcommunityaction.org.uk

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