Frequently Asked Questions About Charity and Charity Shop Insurance
1. Why Do Non-Profit Organisations and Charities Need Insurance?
The fundamental purpose of a voluntary organisation or charity is to offer a service and to raise the necessary funds to enable them to do so. Despite the fact that they aren't a profit making enterprise, they still have a duty of care to their volunteers, employees and the general public. If the organisation does not have appropriate insurance, they could find themselves liable for any costs or damages that result from an injury sustained on their premises, particularly if they are operating a retail shop. Whilst researching and purchasing insurance, it is important to remember that cheap shop insurance probably won't be the best shop insurance and the most important factor to consider has to be obtaining adequate and appropriate cover.
2. Is Employer's Liability Insurance Compulsory?
All UK employers are legally obliged to purchase employers liability insurance; the current certificate needs to be displayed in a place where interested parties can see it and past certificates should be retained for a period of 40 years following expiration.
3. Public Liability Insurance
Although public liability insurance is not legally required, it is highly recommended that all organisations including non-profit and charities buy it to ensure protection against any claims that involve 3rd party damage or loss. If a customer trips on a loose carpet in the charity shop, without public liability insurance, the charity may be held liable for legal costs in addition to the actual compensation awarded.
4. How Much Should We Insure For?
Whatever you are insuring needs to be insured for the full cost of rebuilding or obtaining a replacement. This will ensure that you will receive an adequate amount of money in the case of a claim. If you are under insured, your insurance provider is likely to reduce any claim amounts in proportion to the amount of the under insurance and you will liable to pay the difference.
5. How Can We Insure Items Which Are Removed From the Premises?
Many shops and businesses need to have coverage for 'off site' items and an 'all risk' policy should be purchased. Policies are available for items anywhere in the world, in Europe or within the UK.
6. Does Employer's Liability Insurance Cover Volunteers?
Yes, as long as your insurer is aware of the nature of your business, cover for any damage or injury to a volunteer which they sustain in the course of their duties will be included.
7. What Happens if We Undertake Hazardous or Extreme or Activities?
All details should be provided to your insurance provider before the event takes place so that they are able to evaluate the potential risks. You should be able to obtain insurance for most events but may find that an extra premium is charged.
8. Do We Need to Obtain Public Liability Insurance for an Event Being Held Inpremises That Is Covered by the Owner's/landlord's Own Insurance?
Yes, the premises insurance will only cover their own liability for injury or damage sustained as a result of their negligence, if for example, the injury was caused by poor building maintenance. However this insurance will not cover your activities or event and it is recommended that you purchase adequate protection of your own. A lot of 3rd party venues will require proof of your public liability insurance prior to the event taking place.
9. Will We Automatically Be Covered for Activities Which Take Place Off the Premises?
No, All details should be provided to your insurance provider before the event takes place so that they are able to provide advice regarding the appropriate cover required as well as any terms and conditions that may need to be applied.
10. What Is Employment Practices Liability Insurance and Why Does a Voluntary Organisation Need This Cover?
Changes and revisions to employment law in recent years have meant that it is becoming ever easier for dissatisfied employees to take action against their employer. In view of these amendments, voluntary organisations and charities now have the option to arrange employment practices liability cover. This will provide protection in respect of expenses, legal costs as well as court awards for a wide range of disputes including discrimination due to an individual's race, sex, religion, belief, disability, or sexual orientation. This insurance will also cover constructive or unfair dismissal of an employee and other questionable allegations which can are expensive to defend.
Cheap shop insurance policies will only offer some of these elements as 'add-ons' and may result in a higher premium needing to be paid than was quoted for the basic policy.
Cheap shop insurance is available in the UK from Specialist Risks.
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