Buy Charity Insurance

Charity insurance is a type of insurance coverage specifically designed for non-profit organizations and charities. It provides protection for the charity's assets, employees, volunteers, and operations against potential risks and liabilities. This can include coverage for property damage, theft, liability claims, employee injuries, and other related risks.

Charity insurance is designed to help charities mitigate their exposure to financial losses and ensure their continued ability to serve their communities.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small charities ranges from $27 to $59 per month based on location, services offered, payroll, sales and experience.

Charitable organizations need insurance for a number of reasons:

Protection from Liability Claims: Charitable organizations often host events, work with volunteers, and provide services that could expose them to liability claims from third parties. Insurance can provide protection from these claims and help cover the cost of any legal fees and settlements.

Property Damage: Charitable organizations often own or lease property, and insurance can protect them from financial losses due to property damage or theft.

Employee Coverage: Charitable organizations often have employees and volunteers, and insurance can provide protection for them in case of injury or death while on the job.

Data Breach: Charitable organizations may collect and store sensitive information, such as donor information, and insurance can provide protection in the event of a data breach.

Income Protection: Charitable organizations often rely on fundraising activities to generate income, and insurance can provide protection in case of a loss of income due to an unexpected event, such as a natural disaster.

Overall, insurance provides protection for charitable organizations and can help them continue their mission and provide support to those in need, even in the face of unexpected challenges.

There may be certain types of insurance that your charity is legally required to take out, and there may also be optional charity insurance policies that you will choose to purchase, to ensure you're comprehensively covered, which is why it's important to do research.

The policies that you include in your charity's insurance package may be influenced by a number of factors, including the size and nature of your organization, and the work it carries out.

That said, there are likely to be a handful of risks that your charity could be exposed to, no matter what its circumstances. So, you need these basic charity insurance coverages:

General Liability

General liability insurance (CGL) covers third party property damage or personal injury claims against you or your charity. With charity insurance you're covered for:

• Third-party bodily injury or property damage claims against your charity.
• Public liability at your premises and at fundraising events such as: fetes, craft fairs, walks, dinners, fun days, etc.
• Replacing third-party keys, locks and pass cards lost while in your care.

For example, if a member of the public trips over the cable that's powering your projector and breaks her ankle, your general liability insurance pays any compensation that's due, and your legal defense costs.

And if one of your volunteers spills coffee over a visitor's laptop, it's still your general liability policy that pays for its repair or replacement.

Commercial Property

This type of charity insurance protects your buildings, contents and stock against damage from causes including fire, explosion, storm, falling trees, vandalism, escape of water, vehicle impact and theft.

Flood and earthquake are not part of a standard business property policy.

Directors & Trustees Liability

Trustees are legally responsible for a charity's activities, in the same way that directors are responsible for a business' activities.

This means having oversight of things like fundraising and donations, as well as making sure your people are looked after and that your charity complies with relevant laws.

If someone alleges your charity's done something wrong, as a trustee, it's your responsibility to defend the claim. charity insurance for trustees' insurance gives you expert legal representation and pays any fines you're liable for. You're covered for:

• Your personal liability as a trustee.
• Actual or alleged 'wrongful acts', including breach of trust, defamation and negligence.
• Legal defense costs and damages.

Professional Liability

Professional liability, also known as errors and omissions, protects your charity if it provides services or advice. Perhaps your charity helps people start businesses, designs websites to publicize other people's events, or lists other products and services?

Giving advice or services exposes your charity to the risk of negligence claims and could mean it's forced to defend its reputation, whether or not the accusations are just.

With this type of charity insurance you're covered for:

• Protection against mistakes your charity makes.
• Legal defense costs if your charity infringes someone else's copyright.
• Coverage for damages and fines.

Data Breach

This charity insurance policy covers any compensation that your organization has to pay if you accidentally share someone's details with a third party, for example. Lists of wealthy donors are common hacking targets. Plus, it pays for your charity's defense costs, if that person sues you for doing so. You're covered for:

• Financial losses caused by your charity's mistakes and things you've failed to do.
• Compensation and defense costs if someone brings a data protection claim against your charity.

Workers Compensation

Many charities have employees and also will use the services of volunteers. Many states class volunteers as employees, even if they're unpaid, temporary, part-time, or simply helping out. And because they're classed as employees, their health, safety and welfare is your organization's legal responsibility.

Without workers comp, your charity or social services organization would have to pay out of pocket for lawsuits or medical bills if an employee or volunteer experiences a work-related injury or ailment. Plus it is required in most states anyway.

Equipment And Business Interruption

Equipment charity insurance covers the things your charity takes out and about, from tables and chairs to computers and display screens:

• Loss, theft or accidental damage to your charity's property.
• Damage caused by fire, storm or operator error.

It's an 'all risks' policy which, as the name suggests, means your charity's property is covered in all reasonable circumstances including theft, fire and accidents. If there is a disaster and your charity's forced to move out of its premises, business interruption cover pays for your charity to set up somewhere else.

Charities, like any other organization, can face legal challenges and be sued for various reasons. Some common reasons include:

Employment disputes: Charities can be sued by employees or volunteers for wrongful termination, discrimination, harassment, or other employment-related issues..
Insurance protection: Employment Practices Liability Insurance (EPLI) can help cover the costs of defending against such claims and any settlements or judgments that result from a lawsuit. This type of insurance typically covers legal fees, court costs, and any compensation awarded to the claimant.

Breach of contract: Charities might be sued for failing to fulfill their obligations in a contract, such as not providing services or goods as promised to donors, sponsors, or other third parties.
Insurance protection: Commercial General Liability Insurance (CGL) can help cover the costs of defending against breach of contract claims and any resulting damages. This type of insurance typically covers legal fees, court costs, and any compensation awarded to the claimant.

Intellectual property infringement: A charity could be sued for using copyrighted material, trademarks, or patents without permission.
Insurance protection: Intellectual Property Insurance (IPI) can help cover the costs of defending against intellectual property infringement claims and any damages awarded to the claimant. This type of insurance typically covers legal fees, court costs, and any compensation awarded to the claimant.

Personal injury or property damage: A charity could be held liable if someone is injured or property is damaged during an event or on the charity's premises..
Insurance protection: Commercial General Liability Insurance (CGL) can help cover the costs of defending against personal injury or property damage claims and any resulting damages. This type of insurance typically covers legal fees, court costs, and any compensation awarded to the claimant.

Professional negligence: A charity could be sued for providing inadequate or incorrect advice, leading to financial loss or harm to an individual or another organization.
Insurance protection: Professional Liability Insurance (PLI), also known as Errors and Omissions (E&O) insurance, can help cover the costs of defending against professional negligence claims and any resulting damages. This type of insurance typically covers legal fees, court costs, and any compensation awarded to the claimant.

Mismanagement of funds: Charities could face legal action if they are accused of misusing or misappropriating funds intended for specific purposes or beneficiaries.
Insurance protection: Directors and Officers Liability Insurance (D&O) can help protect board members and officers from personal liability arising from claims of mismanagement of funds. This type of insurance typically covers legal fees, court costs, and any compensation awarded to the claimant.

It's important for charities to consult with an insurance professional to determine the appropriate types and levels of coverage for their specific needs and risks. Proper insurance coverage can help protect a charity's reputation, financial stability, and ability to continue its mission in the face of legal challenges.