What insurance do youth groups and children's charities need?

Insurance can be a good way to limit some of the risks of running your youth groups or children's charity. However with the need to use charity money wisely it is important to get the right level of cover at a good price.

As a specialist insurance broker, Unity Insurance Services understands that youth groups and children's charities will work in different ways, own different items and carry out different activities, so a standard office insurance policy may not meet your needs.  

Along with the more obvious types of insurance cover for your building, contents, equipment and motor vehicles, your charity or youth group may need to consider other insurance cover. So how do you know what cover you should have?

Your insurance should relate to the risks you face

Insurance protects individuals, organisations and their property and reputation against the risk of loss, damage or theft, accidents or liability claims.  So Unity Insurance Services suggests the starting point for deciding on your insurance needs should be examining the risks you face.  Not all insurance policies are the same. You should arrange insurance that covers your own particular circumstances and specific risks.

Could people make a claim against your organisation?

Defending a claim can be stressful and expensive even if you are found not to have been at fault. The cost of subsequent damages awarded could seriously affect your charity and damage your reputation.

Do you interact with the public?

If you interact with the public, whether it is individuals or other organisations, Public Liability Insurance will cover the cost of compensation including legal fees and costs to third parties for death, injury or damage to property caused by the negligence of your staff, volunteers or members.  Working with young or vulnerable people you should check that your public liability insurance includes abuse cover.

Do you provide advice?

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. If your activities involve any sort of first aid you can include a treatment extension in the policy to cover physical harm caused from your professional negligence.

Do you employ staff or have volunteers?

If you employ anyone - including on a temporary, part time or seasonal basis including students or others on work placements - it is a legal requirement to have Employers' Liability Insurance. This covers your legal liability for any injury, disease or fatality to employees which may occur through their work. Authorised volunteers can also be included under this cover.

What would happen if your building was damaged or your property stolen?

The loss may not only be the cost of replacing physical assets such as buildings and equipment, but also the loss of income while these are replaced.

Would you be able to operate without your premises?

Whilst building insurance will pay to restore your building, this can take time, the site may have to be cleared, and often in the case of a total rebuild planning permission will have to be sought.

During this time you may be unable to deliver your services and lose income, lose systems and records, have additional expenses in relocating, and if you rent out any part of your premises you may lose rental income. Business Interruption Cover will pay an amount to cover the shortfall in income/revenue and pays any increased costs of running the organisation.

Are you responsible for handling money?

If you hold money on the premises or handle large amounts of cash, you may need Money Cover to protect you if your money is lost or stolen perhaps due to a break-in or assault. If you hold a fundraising event you may need to consider insuring the money taken from sale of tickets and goods at the event.

Could you be a victim of fraud or dishonesty?

Often, basic money and contents insurance will only provide cover if there is a forced entry into the property.  But if an employee or volunteer, who has keys or access to your premises, steals from you, this will not come under the scope of the normal contents and money insurance. Fidelity Insurance will cover you for loss of money or property as a result of employee or volunteer dishonesty, including fraud, computer fraud or embezzling money.

Are there risks associated with your events and travel?

Do you organise trips and days out?

Working with children or young people, group trips may form a core part of your charity's work.

As well as medical expenses and repatriation which are the main aspects associated with Travel Insurance, it also includes cover for the trip being cancelled and compensation for costs, delays, trip curtailment, damaged, lost or delayed baggage and damage or loss of personal items and cash.

Be aware that ‘off the shelf' travel insurance policies cater for the holiday market or standard corporate business travel and may not all the activities being undertaken by your travellers. Those on your trips may have special medical conditions which require specialist cover to ensure suitable protection or may be doing activities.

Do you organise events?

If your charity or group is organising an event, such as a fundraising activity, you may not be covered under your annual insurance policy for the event.  In which case you would need additional cover for your event. Event cover can include public liability and equipment cover specifically for your event as well as cancellation cover.  Event Cancellation Cover protects you if your event cannot go ahead for reasons outside of your control. For example, you may have already incurred costs such as deposits or still be contracted to pay money out to suppliers. Cancellation cover would cover you for these losses.

Do you want additional insurance to protect the people in your organisation?

Do you want to protect your people if they have an accident?

If an employee or volunteer becomes injured while working for you and no one is to blame, you may feel a moral duty to compensate them even when you do not have a legal duty. Personal Accident Insurance can help to look after your people, by paying a regular benefit in cash if they cannot work because they have had an accident.

Do you want to protect your trustees?

Your trustees could be personally liable to make good the charity's losses. Trustees Indemnity Cover can provide protection to trustees where they may be held personally liable.

Are there other risks associated with your organisation?

How would you cope if your reputation was damaged?

If you were to suffer adverse publicity, repairing your reputation could be very costly.  This could be following the dismissal or resignation of a person associated with your organisation.  Or it might result from an actual or alleged criminal act which offends public decency by somebody associated with your organisation. Crisis Management Insurance could protect you by covering your additional PR expenses.

Getting the right insurance cover for your organisation

Unity Insurance Services recommends that you speak to a specialist insurance broker who understands how children's charities and organisations operate and the risks you face, so that you get the right protection for your needs.

Unity Insurance Services is a charity owned, specialist insurance broker with particular expertise in children's and young people's charities and youth organisations. For more information on how Unity can help with your insurance needs, visit the Unity Insurance Services website or call us on 0345 040 7702.