Keeping your business risk information up to date is essential to ensure your insurance cover remains adequate, your premium remains competitive, and your insurer fully understands and accepts your risk. At DPI, we provide bespoke advice and service when arranging your insurance. If there’s anything you don’t understand or need help with, please don’t hesitate to contact us – we’re here to support you.

Below is a summary of the key areas we typically review at renewal for Charities and Third Sector insurance policy and why they are important:

1. Business Activities and Mission Statement

We’ll review your charity’s objectives and activities to ensure your coverage accurately reflects the work you conduct, including:

• Fundraising activities, such as events, campaigns, or online donations
• Volunteer work, including roles and responsibilities
• Services provided (e.g. outreach programs, support services, educational initiatives)

Providing a clear and accurate description of your operations ensures that your policy covers all aspects of your charitable work.

2. Fundraising and Public Liability

Many charities rely on events or activities to raise funds. We’ll review:

• Events, including public fundraising events, raffles, or sponsored challenges
• Public Liability cover for these events to ensure protection against injury or property damage claims
• Any liabilities associated with collecting donations or engaging with the public

Public Liability is essential for any organisation interacting with the public to protect against third-party claims.

3. Employers’ Liability

If your charity has paid staff, volunteers, and trustees, Employers’ Liability insurance is a legal requirement. We’ll review:

• The total wage roll and/or numbers of all employees, volunteers, and trustees including part-time or temporary
• Roles and responsibilities, including any high-risk activities performed by volunteers or staff

4. Material Damage

This includes cover for Buildings, Contents, Computer Equipment, Stock, and Business Interruption. It’s vital that the insured values are accurate and reflect the full value at risk. Underinsurance could lead to a reduced claim payout through the application of the ‘average clause’.

• For further information on setting sums insured, see our downloadable guide: “How to Avoid Underinsurance.”

5. Trustees’ Liability and Directors & Officers Insurance

Trustees and directors of charities can be personally liable for decisions made in their roles. We’ll review:

• Trustee Liability: Ensuring coverage for the actions of trustees and board members in the event of wrongful acts or breaches of duty
• Directors & Officers (D&O) Insurance: Protecting the personal assets of those in leadership positions from legal costs, settlements, or regulatory fines

This is particularly important if your charity has a complex governance structure or works in high-risk sectors.

6. Claims History

Reviewing any claims from the previous year’s helps identify potential risk management improvements. Frequent or high-value claims may affect terms at renewal, but demonstrating proactive loss prevention measures can support favourable outcomes.

7. Insurance General Acceptance – Adverse Financial History, Health & Safety Breaches and Criminal History

Commercial insurance is subject to an ongoing fair presentation of risk and insurance contracts are subject to certain standard general acceptance criteria. It is the ongoing responsibility of the policyholder to ensure any adverse financial history, health & safety breaches and criminal history are disclosed as these are considered material facts that directly impact the insurer’s ability to accurately assess risk. Non-disclosure or misrepresentation of such information can lead to serious consequences, including the voiding of the policy, rejection of claims and legal action. Full disclosure ensures transparency, allows insurers to offer suitable terms and helps maintain the integrity of the insurance contract.

Please Note:
This guide provides a general overview and is not exhaustive and should not be construed as bespoke advice or a personal recommendation. Insurance needs vary depending on the size of your charity, the services you provide, and your risk exposure.