Management Committees need to ensure that they have assessed the types of insurance that the organisation needs to adequately protect its assets, activities, staff and volunteers. It is always important to seek professional advice in relation to particular types of insurance. More
Types of insurance policy
Following is a brief summary of various types of insurance available:
Employer's Liability Insurance
If your group or organisation employs staff (full time or part time) it is required by law to purchase Employer's Liability Insurance. This covers paid employees in the event of accident, disease or injury caused or made worse as a result of work or of employer's negligence. In order to cover volunteers, in addition to staff, the policy must explicitly mention volunteers.
The Volunteers and Insurance information sheet from Volunteer Now explores what insurance cover organisations should have in place in relation to volunteers and their activities.
Trustee Indemnity Insurance is a policy that protects Management Committee members in the event of claims against them personally. The term ‘trustee' refers to Management Committee member of a charity, but the insurance is generally available to non-charitable organisations as well.
The precise scope and restriction of the cover will depend on the terms of the policy. However, once again this insurance will not cover Management Committee members where personal loss is as a result of negligence on the part of any of the Management Committee.