Why Insurance is Important by Jessica Savory, our insurance consultant
Charity and social enterprises face increasing challenges and uncertainties. Many continue to balance increased demand for services with reduced income, calling for ever-increasing resilience and creativity. Jessica Savory, at Charity Insurance specialist One Broker, explains why insurance remains a critical
safety net from unexpected events that could otherwise jeopardise your survival.
Insurance and the “unplanned event”
Unplanned events happen when you least expect them. Examples of unplanned events could be Fines, Tax or Payroll disruptions, Legal Fees, Injury, Medical Expenses, Reputational Damage, Cybercrime and Property Damage.
We’ve planned for unforeseen costs
One event could wipe out your self-insured fund, leaving your organisation stuck between deciding upon the ‘risk of something happening’ and the ‘cost of legal and medical fees, reinstatement of property, or reputational damage (abuse)’ if it does.
Examples of where insurance has provided the safety net for an organisation:
During an event, a volunteer was involved in a fatal accident; the Health and Safety Executive and family members brought legal actions against the Organisation and Trustees for breach of their duty in failing to provide adequate training and supervision. An Organisation faced a claim for discrimination after it was alleged that it had breached its statutory duty by not making its website accessible for blind people.
The offices were damaged following a leak. The Trustee responsible for maintaining the insurance didn’t update their broker with the insured values. This resulted in ‘underinsurance,’ where the insurer did not pay for the full remedial works, and the charity could not afford the shortfall. The Trustees took legal action against the Trustee responsible for the error.
In these examples, having the right insurance broker is key and has proven vital to the survival of organisations. Without the right insurance programme, unplanned events could significantly impact an organisation’s ability to operate.
Contact Jessica for your free insurance quotation: Jessica.Savory@onebroker.co.uk
