insurance

Prior to reviewing your insurance arrangements, it is worth understanding the different types of policies that exist.

The following are the most common and for each one there is a brief explanation.

  • Public Liability:  This provides coverage to third parties for property damage or personal injury that may occur as a result of the operations of the organisation.
  • Personal Accident:  This covers volunteers of the organisation for expenses as a result of injury, death or disability that may occur when volunteering for the organisation.
  • Professional Indemnity:  This covers individuals of the organisation against claims made where there is a breach of professional duty such as, for example, a result of an error, omission, negligence, loss of information or bad advice that has occurred while performing their professional activities.
  • Directors and Officers Liability:  This covers board or committee of management members for losses if a claim is made against them as a result of providing wrong advice, acting negligently or incorrectly such as dismissing a staff member without following due process or asking them to undertake a dangerous activity.

While the above are the most common there are a number of other types of policies to consider that depend on the type of organisation and the activities undertaken.  For example:

  • Product Liability:  This is when you sell a product that results in an injury to another person or causes damage to their property.  Even if you don’t normally sell products as part of your day to day activities this insurance can apply to fundraising events where a product is sold.
  • Fraud of Fidelity:  This provides cover for losses as a result of fraudulent activity by staff, volunteers, board or committee of management members.
  • Property and Building:  Property insurance usually covers the contents whereas building insurance covers the actual premises.
  • Travel:  If you have staff who travel domestically or international this can be important especially as costs can add up if flights are cancelled, luggage is lost or there is a need for medical expenses if sickness occurs.
  • Motor Vehicle:  If you have motor vehicles ensure people who use them such as staff, volunteers, board or committee of management members are covered for third party property and loss or damage that might occur in an accident. 

It is important to note that while these are the most common types of insurance policies you still need to make sure your insurance policies provide you with the right coverage.   Depending on the type of organisation and the range of activities you undertake there may be a need to obtain additional insurance coverage that have not been discussed above.

The next post discusses the main issues that you should examine to determine the type of insurance you require.