One of the key elements of running a charity is hosting fundraising events, which are often integral to the continued success of a charity.
To ensure an event goes well, obtaining the correct insurance is essential.
Charity fundraising events often take a long time to organise and can require a lot of investment, so it is always prudent to arrange some form of protection against unforeseen circumstances occurring at the event or prior to it taking place – whether it be a low-key affair or a large-scale operation.
Most charities will, of course, make every effort to ensure all risks are minimised before an event, but taking out such insurance will help to protect even the most organised charity against any unpredictable or unavoidable problems. Take the pandemic, for example – no matter how much risk management a charity did when organising their events for 2020, it’s highly unlikely they had a plan that considered the outbreak of coronavirus.
Although organising insurance might seem like a hassle, it can save a significant amount of money should somebody make a claim. If there is no insurance in place, costs will have to come out of a charity’s own finances and the total can rack up to thousands of pounds’ worth of compensation and legal fees.
The Chartered Institute of Fundraising offers plenty of advice on the matter, but there are four basic types of insurance to consider.
1. Public liability insurance
First of all, this form of insurance protects a charity against any injury caused to a member of the public because of negligence on the organisation’s part. An example of this could be a member of the public tripping over an obstacle at an event.
In addition, public liability insurance also covers damage made to third-party property. A number of charity fundraising events will be held in public spaces such as village halls, community centres or rented properties. It is very easy to accidentally damage the floors or walls when setting up and running an event, with some seemingly minor damage costing a surprising amount to repair.
2. Employers' liability insurance
This insurance is a legal requirement if a charity has contracted employees and can sometimes, depending on the policy in place, also cover any volunteers for the organisation – you should always double-check whether this is the case or not. Public liability does not normally cover volunteers, so investment in a suitable policy is very important.
3. Business equipment insurance
As well as protecting a charity against outside claims, providing cover for an organisation’s equipment and assets is also recommended. Electrical equipment such as laptops, microphones and speakers, for example, can cost thousands of pounds to replace. Business equipment cover can protect a charity against paying out for expensive repairs or replacements.
4. Event cancellation insurance
This type of cover can safeguard your charity if your fundraising event is postponed or cancelled for reasons outside your control, such as weather, illness, or the non-appearance of a speaker or celebrity guest.