Charities carry the same physical risks as any small organisation and two that are largely their own: people who work without being paid, and a governing body of individuals who can be personally liable for the decisions they take.
Volunteers, and the cover that follows them
A volunteer is not an employee, so employers' liability is not compulsory for them by the same route. Insurers nonetheless treat volunteers as the charity's responsibility, and most charity policies extend employers' liability or a personal accident section to cover them, because a volunteer injured while doing the charity's work will look to the charity. The honest question to ask an insurer is which section covers volunteers, since the answer differs between wordings and nobody wants to discover it after a fall.
Trustees, and why personal liability is real
Trustees can be personally liable for decisions taken in that role, including breaches of trust, mismanagement and some regulatory failures. Trustee indemnity insurance answers for that personal exposure, subject to exclusions for dishonesty and for fines and penalties, which are not insurable. The charity's own governing document has to permit the charity to buy it, and the regulator's guidance sets out how, which makes this a governance decision recorded in minutes rather than a purchase somebody makes quietly.
Events, which are a different risk for one day
A fete, a fun run, a fundraising dinner or a street collection concentrates public liability into a single day with unfamiliar equipment, temporary structures and members of the public. Many annual policies include events up to a stated size and exclude anything larger, involving animals, fairground equipment, bouncy castles or road closures. A charity planning something bigger than usual should check the limit rather than assume the year's cover stretches across it.
Premises, minibuses and the things charities own
Charities own an unusual mix: a hall, a shop, a minibus, equipment loaned to members, records about vulnerable people. Each has its own cover and its own conditions. Vehicles used to carry beneficiaries need the right class of use. Work with children or vulnerable adults brings abuse cover, recruitment checks and safeguarding into the insurance conversation, and insurers will ask for the policies as well as the premium.
Questions people ask about charity insurance
Do volunteers need employers' liability cover?
Not through the same statutory route as employees, but most charity policies extend employers' liability or a personal accident section to volunteers. Ask which section covers them.
What does trustee indemnity insurance cover?
A trustee's personal liability for decisions taken in that role. It excludes dishonesty and cannot cover fines or penalties, and the governing document must permit the purchase.
Is a fundraising event covered by the annual policy?
Usually up to a stated size. Larger events, animals, inflatables, fairground equipment and road closures are commonly excluded and need to be declared.