Why charities need insurance

Public liability and event insurance

You’re covered for:

• Third-party bodily injury or property damage claims against your charity.
• Public liability at your premises and at fundraising events such as: fetes, craft fairs, walks, dinners, fun days, etc.
• Replacing third-party keys, locks and pass cards lost while in your care.

Public liability insurance (PL) covers third party property damage or personal injury claims against you or your charity.

For example, if a member of the public trips over the cable that’s powering your tea urn and breaks her ankle, your public liability insurance pays any compensation that’s due, and your legal defence costs.

If one of your volunteers spills coffee over a visitor’s laptop, it’s your public liability policy that pays for its repair or replacement.

Trustees’ liability

You’re covered for:

• Your personal liability as a trustee.
• Actual or alleged ‘wrongful acts’, including breach of trust, defamation and negligence.
• Legal defence costs and damages.

Trustees are legally responsible for a charity’s activities, in the same way that directors are responsible for a business’ activities.

This means having oversight of things like fundraising and donations, as well as making sure your people are looked after and that your charity complies with relevant laws.

If someone alleges your charity’s done something wrong, as a trustee, it’s your responsibility to defend the claim.

Trustees’ insurance gives you expert legal representation and pays any fines you’re liable for.

Professional indemnity

You’re covered for:

• Protection against mistakes your charity makes.
• Legal defence costs if your charity infringes someone else’s copyright.
• Cover for damages and fines.

Professional indemnity (PI) insurance protects your charity if it provides services or advice.

Perhaps your charity helps people start businesses, designs websites to publicise other people’s events, or lists other products and services?

Giving advice or services exposes your charity to the risk of negligence claims and could mean it’s forced to defend its reputation, whether or not the accusations are just.

MyCharityGuard provides specialist solicitors to fight your charity’s corner, an international insurer to pay compensation, and an insurance expert to support your charity every step of the way.

Data protection cover

MyCharityGuard protects your charity in case you inadvertently breach the 1998 Data Protection Act.

The policy covers any compensation that your charity has to pay if you accidentally share someone’s details with a third party, for example. Plus, it pays for your charity’s defence costs, if that person sues you for doing so.

You’re covered for:

• Financial losses caused by your charity’s mistakes and things you’ve failed to do.
• Compensation and defence costs if someone brings a data protection claim against your charity.

Crisis containment PR

Features:

• Immediate crisis communications support.
• Access to a dedicated 24h seven-days-a-week telephone hotline.
• A crisis containment partner to work alongside you.

If you fear that a simple claim might transform into a crisis, the crisis containment element of MyCharityGuard is there to protect you.

It will give you the information and support you need and pay for the services of a PR firm with experience in crisis management.

For example; a volunteer trips and breaks her ankle while making tea at one of your events. You intend to make a claim on the employers’ liability element of MyCharityGuard.

However, it fast stops being that simple. The volunteer tells her solicitor that she doesn’t think your stand was properly managed and has requested that your charity is investigated for a breach in health and safety. She’s started to mention the incident on social media too.

MyCharityGuard crisis containment will provide immediate, reputation-saving support.

Volunteers’ and employers’ liability

If a volunteer or employee is injured while working for you, it’s your charity’s responsibility.

The Health and Safety Executive classes volunteers as employees, even if they’re unpaid, temporary, part-time, or simply helping out. And because they’re classed as employees, their health, safety and welfare is your legal responsibility.

If a volunteer or employee sues you for damages, you’re liable to pay compensation.

It protects your charity against:

• Bodily injury claims against your charity by its employees, volunteers, and helpers.
• Defence costs for further criminal prosecutions against you following a claim.
• Court attendance as a witness in connection to an employee’s or volunteer’s claim.

Equipment and business interruption

Add to cover:

• Loss, theft or accidental damage to your charity’s property.
• Damage caused by fire, flood, storm or operator error.
• Theft or loss of money held on behalf of your charity.

Portable equipment insurance covers the things your charity takes out and about, from tables and chairs to computers and display screens.

It’s an ‘all risks’ policy which, as the name suggests, means your charity’s property is covered in all reasonable circumstances including theft, fire, flood and accidents.

If there is a disaster and your charity’s forced to move out of its premises, business interruption cover pays for your charity to set upsomewhere else.