Charity insurance and how your charity can save money
05 October 2009
UK Charities are having to cut costs whenever possible. This article looks at how they can save when buying cover.
Charity insurance is often one of the largest expenditures a charity or voluntary organisation will have to make. This article looks at the importance of getting the right cover for your charity, combined with some top tips on how charity liability insurance can be purchased for less. Charities, community groups and other non-profit organisations do amazing work which in the majority of cases benefits our local communities. Much like business, charities have suffered in recent times due to less money being given to charitable causes, falling donations of stock to charity shops and a general need for everyone to cut costs. For this reason, many charities have ceased trading and those that remain are now having to reduce they amount they spend on services such as insurance cover.
The trouble some charities may face when looking to cut costs is that from certain insurance providers, they are quoted and sold an insurance policy that has not been designed specifically for charities, youth organisations or community groups. Whilst this may not necessarily be a big problem, it does sometimes mean they can end up with cover that they do not necessarily need or want.
Another such problem is the insurance broker or insurance company the charities use might not really understand the charity sector. It is possible a charity will use their local broker but by doing so, they may risk not getting the expert advice from a broker who specialises in dealing with charities. It is by using a specialist charity insurance broker that charities could really benefit and make a sizeable saving on their premiums.
There are two main reasons for this. Firstly, the broker will understand the market and will be able to make expert, professional recommendations when it comes to the right cover and the right policy. This could actually mean your charity could actually end up with more cover and better protection for less money. The second reason is that they often have facilities, cover and premiums that are simply unavailable from non specialist brokers.
This means you could ring your local broker as well as a specialist and get two completely different premiums even if the cover is exactly the same. It is clear that recent years for the charitable sector have been tough but charities can survive, prosper and grow. For many, insurance is not the most exciting thing but it is an essential purchase and if charities are looking to cut costs, help could now be at hand.
