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Charity and Community Insurance explained

What does it all mean?

Running a not-for-profit organisation can be complicated, as can understanding all the different sections of insurance covers that make up a charity and community insurance policy. To help you, we've broken down some of sections of our Charity and Community Insurance policy and given a brief explanation of what it is and why your organisation might need it. 

A full summary and explanation of the policy can be found in the Summary of Cover or by speaking to your broker.

  • Business interruption

     
    Business interruption covers your charity for any loss of revenue or income you might suffer following a property loss.

    For example, following a flooding incident, a business could be closed for a number of weeks. Having business interruption cover ensures any lost income is covered, or would provide funds to keep the business operational in the meantime.
  • Cyber

     

    Cyber insurance offers protection from cyber risks which could be damaging to your operations and reputation. Issues can range from data recovery following a hardware failure to a full scale data breach, e.g. hacking incident. Cyber insurance can give you access to a network of cyber risk experts who can help to minimise the disruption to your organisation.

  • Employers liability

     

    Employers Liability insurance covers charities if they are held legally liable for injury to an employee. It is a legal requirement to have Employers Liability insurance if you employ any staff. For charities who mainly use volunteers, it’s still important to have Employers Liability insurance, as there is the same duty of care to protect volunteers as there is staff.

  • Fidelity

     

    - Covers loss of your money or goods caused by an act of fraud or dishonesty by an employee or volunteer

    - You choose the limit of indemnity you require for employees.

  • Goods in transit

     

    - Your goods, with a sum insured selected by you, can be covered for accidental damage whilst in transit by road vehicles operated by you or a haulier. Also whilst being sent by parcel, post, rail or sea

    - Cover for damage to drivers’ clothing and personal effects up to £500

    - Transits can be anywhere in the UK and the Republic of Ireland.

  • Legal expenses

     

    - Provide unlimited telephone legal and tax advice for everyday issues (including a confidential counselling service for you and your employees)

    - Cover to protect your legal position and pay for legal representation on a range of employment or business disputes.

    - Common circumstances when legal expenses cover could help include employment disputes e.g. unfair dismissals, Health & Safety Executive prosecutions or contractual disputes with suppliers.

  • Loss of registration/licence

     

    - Covers the depreciation of your financial interest in the premises or your loss of revenue following the withdrawal of your statutory registration to provide care or education that allows you to run the business.

    - We also cover your premises licence granted under the Licensing Act 2003 or equivalent if you hold one.

    - We can also cover your wedding licence.

  • Medical malpractice

     
    If your organisation is involved in the provision of medical advice or services, medical malpractice cover may be required. Please contact your broker or Ecclesiastical and refer to the separate medical malpractice summary of cover for information regarding the cover we may be able to provide.
  • Money

     

    - Cover for loss or damage to your money, including cash in transit, on site or in a bank night safe. Limit chosen by you

    - £500 for any other loss

    - Cover includes non-negotiable money such as crossed cheques, money orders and vouchers

    - Losses due to dishonesty of employees

    - Fraud and identity theft.

  • Personal accident

     

    - You can insure your permanent employees against accidental bodily injury incurred whilst either solely working for your organisation or on a 24 hour basis

    - You can also insure authorised volunteers against accidental bodily injury incurred whilst working for your organisation

    - Cover for persons over 16 and up to 80 years of age

    - Cover for disappearance of the insured person.

  • Professional indemnity

     

    Professional indemnity covers your legal liability for wrongful acts arising from the provision of your professional services or advice.

  • Property damage

     

    Cover for property you own or are responsible for, including buildings, contents or stock (e.g. charity shop stock). You will be covered when your property is damaged due to a wide range of risks such as:

    - Fire

    - Storm

    - Flood 

    - Malicious damage

    - Theft 

    - Optional covers such as, subsidence and terrorism.

    In the event of a claim, settlement for buildings and contents will be repaired, reinstated or replaced. This is collectively known as on a ‘Reinstatement basis’ and does not apply to stock. 

  • Public & products liability

     

    Public liability insurance covers you when your organisation is held legally liable for injury or damage to a third party. For example if someone is injured on your premises, you may be held liable by courts to pay damages to that third party, and any associated legal costs.

  • Reputational risks

     
    Reputational risks cover protects you when you are liable for costs due to:

    - Libel and slander including infringement of trademark, registered design copyright or patent right

    - Having to employ the services of marketing and public relations specialists to help minimise the risk of damage to your reputation 

    - Business interrupted or interfered with as a result of the death of a Patron before the age of 70, or if your Patron is subject to criminal investigation.
  • Trustee & management liability

     

    Trustee liability Insurance is a reassuring safety net – if a trustee makes an honest mistake, Trustee liability Insurance is there to protect them. It isn’t a legal requirement but is considered essential by charities when recruiting high calibre trustees. This type of insurance will cover breach of trust claims and wrongful trading and associated legal costs. It is important to note Trustee liability Insurance will cover trustees where they have acted wrongfully but they will not be covered if they have acted recklessly or dishonestly. Other items not covered include criminal fines and penalties imposed by public authorities or any costs arising from fraud or dishonesty.

Ecclesiastical Insurance Group plc (EIG) Reg No 1718196. Ecclesiastical Insurance Office plc (EIO) Reg No 24869. Ecclesiastical Life Ltd (ELL) Reg No 243111. Ecclesiastical Financial Advisory Services Ltd (EFAS) Reg No 2046087. Ecclesiastical Underwriting Management Ltd (EUML) Reg No 2368571. E.I.O. Trustees Ltd Reg No 941199. EdenTree Investment Management Ltd (EIM) Reg No 2519319. All companies are registered in England at Beaufort House, Brunswick Road, Gloucester GL1 1JZ. EIO and ELL are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm Reference Number 113848 (EIO) and 110318 (ELL). EFAS and EIM are authorised and regulated by the Financial Conduct Authority. Firm Reference Number 126123 (EFAS) and 527473 (EIM). EUML is an appointed representative of EIO who is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm Reference Number 402228.