Whether your organisation is a small community group supporting local people or a large national charity delivering services across the UK, managing risk is an essential part of protecting your mission. Understanding your charity insurance options can be an important part of that process.
Many charities rely on volunteers, trustees, fundraising events, digital platforms and public-facing activities to deliver support to beneficiaries. While these activities create positive impact, they can also expose organisations to financial, legal, and reputational risks. This is where charity insurance can play an important role.
What is charity insurance?
Charity insurance is a broad term used to describe insurance arranged specifically for charities, not-for-profit organisations, voluntary groups, community organisations and charitable trusts.
Unlike many commercial organisations, charities often face a unique combination of risks. They may rely on volunteers, operate from community premises, manage donated funds, organise fundraising activities or provide services to vulnerable individuals. As a result, their insurance requirements can differ significantly from those of a standard business. The purpose of charity insurance is to help protect the organisation against unexpected events that could otherwise disrupt operations, create financial strain or affect the charity's ability to support its beneficiaries.
Why do charities need insurance?
Every charity faces risk, regardless of its size or income.
For example, a member of the public could suffer an injury at a fundraising event, a volunteer could be injured while carrying out duties, a cyber incident could compromise sensitive information or damage to buildings and equipment could prevent services from being delivered.
While no organisation can eliminate these risks entirely, having appropriate insurance protection for charities in place can help charities manage the financial impact of unexpected incidents and continue delivering their important work. Insurance can also help trustees demonstrate that they've considered the risks facing their organisation and taken practical steps to manage them.
What types of insurance do charities commonly consider?
The insurance needs of every charity vary depending on the activities they undertake, but some commonly considered covers include:
Public liability insurance
Public liability insurance may help protect charities if a third party suffers injury or property damage as a result of the organisation's activities. This can be particularly relevant for charities that welcome visitors, organise events, operate community facilities or work directly with members of the public.
Employers' liability insurance
If a charity employs staff, employers' liability insurance is generally a legal requirement in the UK. This cover may help protect the organisation if an employee suffers illness or injury arising from their work.
Trustee indemnity insurance
Trustees make important decisions regarding governance, finances, strategy and compliance. Trustee indemnity insurance can help provide protection against certain claims arising from decisions made while carrying out trustee responsibilities.
Cyber insurance
As charities increasingly rely on digital systems, online fundraising, cloud-based platforms and email communications, cyber risks continue to grow. Cyber insurance for charities may help organisations deal with the consequences of cyber-attacks, ransomware incidents, data breaches and associated recovery costs.
Property insurance
For charities that own or occupy premises, property insurance can help protect buildings, contents, equipment and other assets against events such as fire, flooding, theft or accidental damage. It's also important to review sums insured regularly, as underinsurance can leave charities exposed to significant financial shortfalls if a claim arises and the cost of repairing, rebuilding or replacing assets exceeds the level of cover in place.
How can charities identify the right level of protection?
Insurance requirements should reflect the activities, services and risks specific to each organisation. Factors that may influence insurance arrangements include:
- The number of employees and volunteers
- Whether the charity owns property
- The type of services provided
- Fundraising and public events
- Use of vehicles
- Digital and cyber exposures
- International activities
- Work with children or vulnerable individuals
As charities evolve, their insurance and risk management arrangements should be reviewed regularly to ensure they continue to reflect the organisation's needs. Reviewing your charity insurance arrangements can help identify areas where cover may need updating.
Protecting your charity's future
Charities operate in an increasingly complex risk environment. Economic pressures, cyber threats, changing regulatory requirements and growing stakeholder expectations all create challenges for trustees and leadership teams. Having appropriate charity insurance in place is about more than simply meeting obligations. It can form part of a broader approach to protecting people, assets, reputation and the ability to continue delivering services to beneficiaries.For organisations seeking to better understand their options, exploring specialist charity insurance solutions can be a valuable first step towards building greater resilience.
About Gallagher's Charity Division
Gallagher arranges insurance for over 9,500 charities, voluntary organisations and not-for-profit groups across the UK, from local community organisations to large national charities. Our specialists understand the challenges facing the sector and can help organisations review their risks and insurance arrangements.
To arrange a review or to find out more about our specialist charity insurance solutions, please get in touch by email UK.CharitiesSME@ajg.com or call us on 0800 612 0089.
