Insurance

"Adequate insurance is essential for all charitable organisations, and community groups are no exception.

There are a few key insurances you should think of getting, depending on the function of the group:

Public and product liability insurance

All community groups that deal with members of the public should consider taking out public liability insurance. It is a relatively inexpensive cover and protects against allegations of injury caused to a third party. This could be, for example, if someone was to trip over a loose wire at an event, or a kettle was knocked over and scolded a visitor.

Public liability insurance also covers against damage caused to third party property – this could be if carpets were irreparably damaged or walls badly marked after your group hired a premises. Most landlords or local authorities will require your group to have public liability insurance before allowing you to rent somewhere or hold an event.

Employer's liability insurance

If your community group has employees, employer's liability insurance is a legal requirement. It covers your group against allegations of injury or illness suffered by staff during their employment. Without it, your group could face a fine of up to £2,500 for every day it is uninsured. Most insurers, including Markel, and also cover your group's volunteers under employer's liability insurance, however some insurers cover volunteers under public liability insurance. If you're unsure which cover they are insured under, check your policy wording or speak to your insurer/broker.

Trustee indemnity insurance

Regardless of good intent, trustees can be held liable for poor decisions or wrongful actions if they have caused a loss to the group. Trustee indemnity insurance covers the legal expenses of defending a trustee against disqualification, investigations or extradition proceedings. Trustees should give serious consideration to this cover; without it, should an allegation of mismanagement be made against them, they may have to defend the claim out of their own personal wealth."

For more types of cover, read the rest of Markel's guide by CLICKING HERE.

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