Getting the right insurance, by asking the right questions

Insurance can be an effective way to safeguard youth groups and children's charities against the risk they face. However, with the need to budget wisely it is important to get the right level of insurance cover at a good price. With so many products on the market, how do you know which cover is best for your organisation?

As a specialist insurance broker, Unity Insurance Services suggests you need to start by asking yourself the following questions.

What insurance must you have?

Some types of insurance cover are required by law. If you employ anybody, you must have Employers' Liability cover. If you own, lease or use vehicles you must have motor insurance. Also some charity bodies insist that their member organisations have a minimum level of insurance cover.

What risks do you face?

A key factor in deciding on your insurance needs should be your risk assessment. You should arrange insurance that covers your own particular circumstances and risks.

Does your umbrella body provide insurance for its member organisations?

You don't want to pay for cover you already have. Some charity bodies extend their insurance cover to include their member organisations, so you may already have some cover, which you do not need to buy. For example, The Scout Association's Public Liability policy is extended to cover all Scout Groups. Therefore, individual Scout Groups do not need to purchase their own Public Liability cover.

What would it cost to replace your property?

You should insure your property for the full cost of replacing it, even if it was donated as a gift or purchased second hand. Otherwise you may find that you are underinsured, and a claim will not pay out enough to replace your property. The sum insured for your building should represent the present day rebuilding cost. This is not necessarily the price paid for your building or its current market value.

How long would it take to replace?

Whilst building insurance will pay to restore your building, this can take time.  You may need to consider adding Business Interruption Cover to your standard building cover.  This would help cover the shortfall in income and pay any increased running costs, while you get your building back up and running.

What claims could be made against your organisation?

Claims could be made against you for compensation due to negligence of your staff, volunteers or members. When working with young or vulnerable people you should check that your Public Liability insurance includes abuse cover.
 
Do you give training or advice?

If your activities involve any sort of first aid you can include a treatment extension to cover physical harm caused from your negligence. If you give advice or provide training, Professional Indemnity cover can protect you against someone alleging that you have advised them incorrectly, causing them a financial loss.
 
When could those claims relate to?

To avoid gaps in your cover, you may need to consider not just events in the future that could result in a claim, but also in the past. This is particularly important with regard to historic abuse claims.

Have you checked the small print?

Don't wait until you need to make a claim before reading the small print. Exclusions may apply to your cover, which are risks or items not covered by a policy.  For example flood damage may be excluded, leaving you without cover if your buildings were flooded.

Case Studies

One charity that raised money through street collections assumed that their Public Liability insurance covered them when out collecting.  However, they discovered that their cover only applied in the office, and their street collectors were not covered when collecting outside. After speaking to a specialist broker, they switched to a more suitable policy, which covered their collectors on the street.    

Camping equipment by its very nature is intended to be used outdoors. However, a youth group's standard commercial policy only covered items at their premises, meaning that they would not be covered at camp.  By switching to All Risks cover or a specialist policy, the group's tents were covered at camp.

Warranties and conditions are what you agree to as part of the insurance contract. For example you may be required to have a certain type of lock or alarm on your building. If you do not meet these criteria, you would not be covered.

Getting the right advice and insurance cover

Not all insurance policies are the same. Unity Insurance Services recommends that you speak to a specialist insurance broker who understands how children's charities and organisations work and their risks, so that you get the right insurance cover. You should also regularly review your insurance cover as your circumstances may change. For more information visit the Unity Insurance Services website or call us on 0345 040 7702.