Business Insurance for Charity - The Ultimate Guide

Even if it is done under non-profit purposes, charity work has its part of risk, and needs its own business insurances. Indeed, charity workers may be injured or ill in the course of their work, but also members of the public when an event is organized for example. That is why charity work needs a comprehensive cover to be properly insured again any hazard or misfortune.

Charity insurance : why to be covered?

As a charity, you face many professional risks. To get the best cover for your business, a strong business insurance package is most recommended.

That being said, what are the risks to be covered? Is having a business insurance package mandatory? It is enough to be fully covered?

To help you find the best charity insurance at the best price, HelloSafe gives you all the details you need on business insurance packages and the recommended complementary guarantees for your business.

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What are your business risks as a charity?

Working as a charity implies many business risks, within which:

An accident involving yourself or your workers
A member of the public is injured during an event
Some of the funds are stolen

Charity insurance : what is covered?

A charity business insurance package is meant to cover several aspects of your activity: your public liability, but also - in case you have employees - your liability as an employer. Your package will also cover your premises as well as your material belongings : equipment, tools, etc.

Public liability insurance for a charity

Being a charity, you need to have a public liability insurance, to be covered in case your activity causes damages or injuries to someone's premises or to somebody (a client or a member of the public). Such an insurance will cover compensations costs and legal fees in case you are sued and held liable. Public liability insurance will cover situations such as if :

You or one of your workers injure someone while working
During an event, someone from the public gets injured or ill

Employers' liability insurance for a charity

As charity, you may employ people, and have them under your supervision. It is a legal obligation for every business owner in the UK to have an employers' liability insurance when you have a person employed - which be paid, unpaid, student or a volunteer.

Insurance for your properties as a charity

When working as a charity, you have material properties that need to be covered by an insurance:

Your tools and equipment if using some
Your premises and work furniture
Your professional vehicle if using one

Not doing so, you could face consequent financial losses and endanger your business. That is why you should always consider having a comprehensive business insurance package covering your properties.

Business interruption insurance and Covid-19

Business interruption insurance is an option that can be very useful. This option gives you the opportunity to be refunded in case your charity has to close totally or partially after a claim. The insurance will reimburse the revenue that you could not generate during that period.

However, the risk of a pandemic like Covid-19 is often excluded from the possible claims in the charity insurance contracts. If you hold a contract, check that particular point in your contract. Beware that if you wish to purchase a business interruption insurance now, Covid-19 will not be covered, for it is no more considered as a hazard.

How much does a charity business insurance cost?

Charity	Annual price
In Manchester Your annual turnover is £100,000	£34
In London Your annual turnover is £250,000	£54

Those prices are indicative, for many parameters have to be taken into account:

• The annual turnover
• The geographic location
• The surface of the insured premises
• The cover level chosen as well as optional extra guarantees
• The insurance provider itself

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Is business insurance mandatory for charity businesses?

Except if you employ someone, business insurance is not mandatory in the UK to run a charitybusiness. However, we strongly recommend it.

A comprehensive insurance business package will cover you in case one of your employees gets injured or ill, or if someone or an organization (a client, a partner) is damaged because of your business activities. It will also protect your material properties against hazard - may it be theft, fire, floods, or any other misfortune. Not being covered could expose your business to very serious troubles.

Which insurance options to purchase as a charity?

As a charity, you may want to purchase specific guarantees that are not included in your standard business insurance package, such as:

Loss of funds cover
Travel insurance for employees or volunteer staff
Professional indemnity insurance when giving advice

How to get a business insurance quote for a charity?

You have several possibilities to choose the best business insurance quote.

First, you can directly contact insurance providers. However, most of them do not propose an online quote comparator, you will have in most cases to have a phone call with them or go to one of their agencies.

A good alternative is to check the best quotes on an online insurance comparison such as HelloSafe, which allows you to have access to a wide range of options in few clicks. In less than 2 minutes, you'll have an overview of the available quotes adapted to your business needs.

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How can I reduce my business risks?

Risks are part of every business. In the course of a career, one always makes mistakes and accidents can sometimes happen. However, some easy actions can be taken to limit the risks' probabilities to happen:

• When dealing with a client, always shape the expectations through a written agreement that both parties firm
• Honesty is a key value in business. being honest with clients and partners will always be your best protection to limit unhappy things to happen
• Try to respect as closely as possible all the legal procedures, especially when working with a client or receiving a public
• Be organized and record all the sign-offs in writing

Our top 10 tips before purchasing a charity business insurance package

Here is a list of tips you’d better bear in mind when you choose your charity business insurance package:

• Before purchasing any business insurance plan, make sure you are well informed on the topic and that you understand what is at stake
• Do not forget to include employers' liability in your package if you employ people : it is a legal requirement
• Public liability is not a legal requirement for charity businesses, but it is almost indispensable to face any hazard. Do no forget it.
• Do not always choose the cheapest deal. An appropriate business insurance package is meant to protect you in case something wrong happen, the risk shouldn’t be minored
• If you think you do not need an extensive business insurance package, think it twice
• Once you have purchased your charity business insurance, always keep a record of it, in case a client asks for a proof
• Try to choose an insurance plan where the legal costs cover level is high – they can reach huge amounts if one day your company is sued to the Court
• If you have a doubt on which options and extras you should include in your charity business insurance package or not, consult your legal advice for accurate responses
• Compare the best business insurance packages with an online platform such as HelloSafe
• Consider charity business insurance as a protection, not a cost