Recent figures show that the UK charity sector is now served by
over a million trustees and 15.9 million volunteers (source Ansvar
Feb 07). It is most encouraging to see so many caring people
involved in the voluntary Sector. Even so, it is a sad reality that
Charities or Companies Limited by Guarantee, their trustees and
officers and employees are vulnerable to being sued or prosecuted
for their decisions and actions. Trustees are often surprised to
realise that in the event of a claim for negligence, breach of
duty, or inadvertent breach of the Law, they can be held personally
liable for an unlimited amount.
Prior to the recent changes in the Charities Act, charities were
usually prevented from purchasing Trustee Indemnity Insurance.
However, the lifting of this restriction means that your charity
can now obtain the protection your trustees deserve and pay for it
from your charity's own resources.
Currently, your Trustees or Directors can be held legally liable
for breaches of the myriad laws which govern what you do, as well
as allegations of negligence in the running of the charity,
provision of services or advice, libel and slander or for
mishandling funds.
There are many decisions that have to be made on a regular basis
in the operation of a charity or company limited by guarantee. You
may also be giving advice or help others in some way. As if this
wasn't enough, there are also many ways in which you can be held
liable if you employ anyone or own property! Adverse publicity
could also affect your reputation and good-standing. Our specialist
covers will remove some of the financial worry concerning such
situations and much more besides.
Our Managing Director, David Balen has worked in many voluntary
organisations over the years and is currently trustee and
treasurer of a number of charities. We have developed some unique
relationships with insurers in this sector, including a specialist
not-for-profit insurer.
We are offering features tailored to the needs of Charities and
voluntary organisations making a positive contribution to society.
We also deal with other Companies who have a specialisation in this
area, enabling us to choose a well-designed protection plan for
your unique needs.
We are offering a comprehensive and flexible package of options
for organisations of all sizes and structures.
The wording of the insurers we use improves the usual
sections of cover such as Buildings, Contents, Employers'
Liability, Public Liability and Charity Trustees' Indemnity. The
cover is broadened further by incorporating Professional
Indemnity, Malpractice and Fidelity Guarantee. Thus we can
offer a wide selection of options to provide adequate protection to
any charity, at a price which is not beyond their means.
We can also offer a single package, if there are no assets to
insure (e.g., Buildings, Contents), for Trustees Indemnity, Legal
Expenses and Loss of Reputation only, with optional extensions for
Professional Indemnity and Fidelity Guarantee.
We can also cater for the smaller charity or not-for-profit
organisation with our Starter Connect package. This is ideal for
groups with an income of under £10,000 and caters for Public
Liability, with options for Employers Liability and Contents/All
Risks cover. This starts from £70.
The Trustees of a charity have unlimited personal liability for
their actions. Furthermore, the Directors and officers of the
Charity, or even employees who have managerial responsibility can
also be held personally accountable for their actions. Likewise
other matters such as employment regulation, tax disputes and
breach of professional duty can have an impact on the charity and
its executives.
A charity is also vulnerable from fraudsters, who often consider
them to be easy targets. Even employees also may be tempted to
steal from the charity and where loss occurs, the charity may not
have sufficient funds to continue.
A charity's reputation is of paramount importance and, where
that reputation is damaged through adverse publicity, funding may
cease and volunteers may not wish to be associated. Without being
able to provide a response to allegations the charity may
potentially be disadvantaged.
Research suggests that many community groups are without
appropriate insurance cover even though it is often a
condition of premises hire. The package is designed to provide
Public Liability and other optional covers for the activities of
clubs, groups and societies, whether at the hired or rented
premises or away from them, at a reasonable cost.
Please do not hesitate to contact us to discuss any of the
above.
