Insurance is a way of reducing and sharing liability. It only comes into play after something has gone wrong and should be seen as a safety net which may prevent depletion of an organisation’s assets or total financial meltdown. While it is best to ensure, through effective risk management, that risks are reduced and are unlikely to materialise, insurance is a highly prudent component of an organisation’s risk management portfolio.
Insurance can cover against loss or damage (eg buildings insurance, contents insurance and event insurance) or against liability (eg professional indemnity insurance, employers' liability insurance, public liability insurance). Most organisations in our research have employer’s liability and public liability insurance and several other policies, depending on their activities and possible liability.
Make sure you understand the details of any policies you take out. In particular, ensure that the policy covers volunteers and check any special terms, conditions or exclusions, such as age limits.
The published guide provides:
- A description of fourteen types of insurance policy
- Tips on deciding what insurance your organisation needs
- Tips on keeping insurance costs down.
