The Third Sector is a challenging landscape, needing to deliver more for less, whilst ensuring effective protection against risk. Charities and Care organisations typically have complex insurance requirements and only a limited range of insurers to choose from.
- The rigours of The Insurance Act 2015 bring into sharp focus a hitherto poorly addressed need to diligence and create a “Fair Presentation of Risk”, or risk being uninsured
- Cyber-attacks and the ICO statement about the expectations on Charities create an additional layer of risk management and insurance cost
- Abuse risk only seems to be growing in the eyes of the press, and judges are admitting claims many years after the event
UK Charities who work outside the UK present a host of complex risk ranging from political, geographic and cultural. Working with our international network of insurance brokers in WING, whom we meet personally twice a year, we are able to arrange local service and compliance with local legislation.
Larger Charities require a broker who can work with their risk management team and other internal and external professionals, to deliver optimum risk advice. Innovation is practised at being part of or leading, multi-disciplinary teams to bring together the skills required. To facilitate this, Innovation has built a network of expertise in areas as diverse as Safeguarding, Contractual Risk Management, Health and safety, Fire Engineering and Cyber Risk.
Medical charities present a particular risk and require deep understanding and experience. Contracts with Pharma and Biotech can create expensive liabilities if not constructed correctly, and insurance for Clinical Trials and IP litigation both have potentially huge cost attachment points.
Innovation Broking are active members of the Association of Medical Research Charities, hosting relevant events
Cyber Security Risk
In addition to the ICO taking a specific interest in the Charity sector, some insurers have been overpricing charity risks to counter an industry perception that there is not enough resource to support effective cybersecurity.
For more information see Cyber and Data Breach
Frequently Special Schools sit in-between an insurers’ appetite. They are not a typical charity nor a typical education risk. Broking to the few specialist insurers is a delicate art, requiring intelligent interpretation of regulators published reports.
Innovation Broking works extensively with, and are a member and conference attendee at, the National Association of Special Schools.
Abuse and Safeguarding
In addition to any damages payable, serious reputational damage, normally uninsurable at a realistic cost, can be caused by abuse incidents. Ensuring the right cover to sympathetically defend claims is critical, both for the current year and in the future.
Insurers have different approaches and stances particularly about whether a claim is dealt with on the policy in force when the claim is brought (claims made) or when the abuse occurred (claims occurring).
Differing requirements apply to different sectors of the Care and Charity world – however, most have a requirement to periodically review the options in a documented format.
Innovation offer to manage this process and the tendering insurer options for their clients.
Trustee Indemnity (also known as Directors and Officers Liability) insurance should a number one management team priority. Trustees and Managers can be personally liable for their actions in correctly governing the charity – which could result in a claim against you to the value of your personal assets.