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 Insurance Act 2015. The rigours of the Act bring into sharp focus a hitherto poorly-addressed need for diligence in the creation of a “Fair Presentation of Risk”, or risk being uninsured
- Cyber-attacks. The ICO statement about the expectations on charities creates an additional layer of risk management and insurance cost
- Abuse risk. The press perceives abuse to be an ever-growing risk, and judges are admitting claims many years after the event
UK charities who work outside the UK present a host of complex risks ranging from political and geographic to 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 Broking is practised at being part of, or leading, multi-disciplinary teams to bring together the skills required.
To facilitate this capability, Innovation Broking 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 is an active member of, and hosts relevant events for the Association of Medical Research Charities.
In addition to the ICO taking a specific interest in the Charity sector, some insurers have been reluctant to offer cover due to the perception that there is not enough resource within charities to support effective cybersecurity.
This can be mitigated with professional presentation of internal cyber governance.
Special Schools frequently sit in-between insurers’ appetites. 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 is a member and conference attendee at, the National Association of Special Schools.
In addition to any damages payable, serious reputational harm 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, such as OJEU, apply to different sectors of the Care and Charity world – most having a requirement to periodically review the options in a documented format.
Innovation Broking can support clients in formulating the correct combination of insurers to create the optimum cover/cost outcome.
Trustee Indemnity (also known as “Directors and Officers”) insurance should be 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.