Do Charities Need Public Liability Insurance?

Do charities need public liability insurance? Well, it can be very important, as they are still exposed to risks that could lead to claims. Let’s take a closer look at how your charity could benefit from public liability insurance, what it covers and how you can get the right coverage.

Understanding public liability insurance and other types of cover

It’s wise to have your charity covered by public liability insurance before events, fundraisers and volunteer activities as  there's a risk of accidental injury or property damage to the public. This insurance covers claims arising from such incidents, protecting your organisation from high legal defence costs and financial loss.

As well as public liability insurance, there are other types of insurance that are also useful for charities to have:

• Product liability insurance helps provide protection when you sell or supply products. For example if a member of the public makes a claim that they have been accidentally injured or their property has been damaged due to the sale or supply of products by your charity.
• Employer's liability insurance is required if your charity has employees, covering workplace injuries or illnesses. You should check specifically with your broker to ensure that cover for your volunteers is included.

Each type of insurance addresses specific risks, allowing charities to have full and appropriate coverage that protects against a wide range of scenarios.

Risks faced by charities

Charities often face common risks like slips and falls at events, damage to third-party property and injuries to volunteers or participants. For example, a participant might trip over a loose cable at a charity concert, or a volunteer might accidentally damage a venue's property.

Incidents like these can lead to liability claims and could damage your charity’s operations, reputation and financial stability. You may face significant legal fees and settlements, diverting funds away from your cause.

Benefits of public liability insurance for charities

Public liability insurance can provide financial protection for charities by covering legal costs and compensation claims that occur due to accidents or damage.

This type of cover includes the cost of legal defence, which can be significant even if your organisation is not found liable. Having public liability insurance in place can allow for greater peace of mind. Allowing staff and volunteers to focus on their cause without worrying about potential financial setbacks.

Additionally, having the right insurance in place will boost your charity’s credibility with donors, volunteers and the public. It clearly demonstrates that your organisation is responsible and well-managed. This reassurance can often attract more support, ensuring your organisation can continue its valuable work in confidence.

How to assess your charity’s insurance needs

Follow these steps to evaluate the specific risks your charity may face:

Identify potential hazards

Review all activities, events and operations to produce risk assessments that pinpoint possible risks.

Consider past incidents

Analyse any previous accidents or claims to understand recurring issues.

Assess impact and likelihood

Determine the potential impact and likelihood of each identified hazard.

Key questions for charity leaders include:

• What types of events do we hold?
• How many volunteers do we have?
• What is the nature of our interactions with the public?

Consulting with an insurance broker that specialises in cover for ‘not for profit’ organisations and charities is also a good step towards safeguarding your organisation. They will be able to provide expert advice and ensure you get the appropriate cover for your needs.

Public liability insurance for your charity

Charities can face significant risks that can have a major impact on their operations and reputation. If a claim is brought against your organisation, you could also face substantial legal fees that could jeopardise its future.

Being proactive in managing risks can safeguard your charity’s mission and resources, allowing you to focus on making a positive impact without worrying about finances.

Public liability insurance from Towergate

Get your charity covered today with our public liability insurance policies. Get a quote from us either online or by phone on 0330 818 9929.

About the author

Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.