[First published: December 2022]
When you’re running a charity or not-for-profit organisation, we know there’s a lot to organise. From managing your premises to overseeing volunteer rotas, there’s plenty on your plate.
That’s why when it comes to tasks like sorting your insurance, it can be tempting to renew automatically, or simply go with your first quote. Well, as experts within the not-for-profit sector, we’re here to explain why it may be worth conducting a more thorough annual review of your charity insurance.
A lack of time can sometimes lead to charity trustees renewing their insurance by letting it roll over from the previous cover. It’s not uncommon to presume that insurance professionals have everything covered and to simply accept your auto-renewal or the first quote you get.
But as specialists in the sector, we’re here to encourage you to undertake a more thorough review of your charity insurance. Here are some reasons why.
1. Your charity’s assets and risks may have changed
When your charity insurance renewal information comes through, it may be tempting to only look at the premium and bypass most other details. After all, as a charity, money can be a constant challenge. However, it’s important that both you and your insurance provider have more than just a glance at your renewal.
Just like with your car insurance, a lot can change with your charity in the space of a year. You may have changed vehicle, been involved in an accident, or even clocked up some points on your licence. When you renew with this sort of cover, it’s important to review the details of last year’s policy, then update the insurer with any changes to get an accurate quote.
The same can be said for charity insurance. In a year, you may have more fleet vehicles, more staff, more valuable assets within your premises, and therefore, more risk. If this is the case, automatically accepting a renewal can be an issue as the quote won’t take into consideration those changes – leaving you under (or over!) insured.
Being underinsured means that should something happen to your organisation, you wouldn’t have the full cover required when claiming. For example, imagine your organisation is unable to continue operating due to a fire. If you were trying to claim for loss of revenue, you may find out that you’re underinsured and therefore don’t have enough cover to protect your charity.
Being over-insured would mean that your charity is paying for cover it doesn’t need.
Charities have a lot of exposure to loss (such as legal liability) and their needs are complex and varied. This is why your charity insurance needs a thorough annual review – working with a charity insurance specialist – to make sure all diverse risks are covered in a well-thought-out approach.
2. Insurance providers review the market annually
Many insurance providers review the insurance market on a regular basis to make sure they’re offering the best cover at a competitive price. At Endsleigh, our team undertake yearly reviews to make sure we’re offering as competitive and comprehensive cover as we can.
If you’re with an insurer that has offered to roll your cover over, you might not be getting the best deal when compared to the current market. It’s sensible to always get a fresh quote based on your charity this year and the current market.
3. Many brokers have exclusive insurers
Many insurance providers work with insurers that are exclusive to them. Meaning that if you only accept a renewal or quote from one insurance provider, you aren’t getting the benefits of having access to the whole market.
For example, at Endsleigh, in amongst the insurers we work with are two who provide a charity insurance product exclusively to us. This makes sure we can always aim to be as competitive as possible when tailoring quotes to each organisation.
4. It’s smart to consider value as well as price
As a not-for-profit organisation, we know money will be at the forefront of everything you do. And whilst cost is extremely important to consider whilst doing your annual insurance review, it’s also a great opportunity to look at other elements of your cover – such as the service you receive and how ‘fit for purpose’ your cover is.
Level of service
As a busy charity, when reviewing your insurance cover for the next year, level of service is important to consider - making sure you’re getting the best value for money possible.
Did you speak with your current insurer over the last year? If so, were you happy with the experience? If you didn’t need to speak with them, do you know what the process is, and how long it would take them to get back to you? What level of expertise do they have?
At Endsleigh, our team remain dedicated to their clients throughout the course of their insurance policy. We work hard to make sure our clients get fast solutions to their routine needs. For example, if you need to make a change to your policy, we try our best to respond the same day.
Understanding your risks
It’s also important to make sure you’re working with a team of specialists who can work in partnership with you to understand your organisation’s unique risks. Our team are here to work with you to get the most appropriate level of cover – bringing you along on the journey so that you fully understand the risks associated with your organisation and how you need to protect against them within your cover.
If you were to opt for cover based on the cost, without giving much thought to all risk elements, getting it wrong could mean devastating consequences for your organisation, trustees and finances in the event where you need to make a claim.
5. A chance to work on aspirations
Many trustees have continuous plans for their charities. But sometimes, just getting the ‘business as usual’ work done is enough to occupy your working hours. It can then be difficult to make the time to pursue new ideas.
A charity insurance review will make you think about the future. Are you planning to grow? Purchase more fleet vehicles? Expand into new areas to offer a new service?
You’ll need to make sure that your organisation is covered for all risks involved. So, your annual insurance review can be a great time to lay out all the risks on the table. You can then plan to protect against them so that insurance isn’t standing in your way when the time comes to roll out your big plans.
In summary, there are lots of benefits to conducting an annual review of your charity insurance. These include:
- Making sure you’re not under or over-insured
- Gaining exclusive access to insurers who only work with certain insurance providers
- Getting more competitive cover via a wider review of the insurance market
- Optimising for additional value to your charity (as well as price)
- Creating the opportunity to include risks relating to potential new ventures
You can lean on and work with your insurance provider to ensure your charity has the right level of cover – protecting against all relevant risks and giving your organisation the best chance of success going forward.
Find out more about Endsleigh’s charity insurance below.