Understanding insurance: A guide
Read time: 5 mins Added: 06/11/25
Running a charity, club or society can be really rewarding, but things don’t always go to plan. From burst pipes to legal claims, insurance helps protect your organisation from unexpected costs. This guide from Arthur J. Gallagher Insurance Brokers Limited* explains why insurance matters, what to look out for and how to avoid common pitfalls.
Risks to be aware of and how insurance can help
Every organisation is unique, so the risks you face and the insurance you might need can differ. Here’s a look at some of the common risks and the types of cover that could help you protect against them:
- Accidents and legal claims - Hosting events or offering services can sometimes lead to injuries or damage. Public Liability Insurance helps cover legal costs and compensation if someone makes a claim.
- Damage to property or equipment - Fire, theft, flooding or vandalism can cause serious disruption. Property Insurance protects buildings, equipment, furniture and stock.
- Giving advice or guidance - If your organisation offers advice, there’s a risk someone could claim it was wrong or caused harm. Professional Indemnity Insurance covers legal costs and compensation if that happens.
- Trustee responsibilities - Trustees can be held personally responsible for things like misuse of funds or breaching their duties. Trustee Indemnity Insurance helps protect them from personal financial loss.
- Events management - Events may face cancellation due to bad weather or unexpected changes. Event Insurance covers cancellations, accidents and damage.
- Staff and volunteers - If someone gets injured or falls ill while working or volunteering, your organisation may be held responsible. Employers’ Liability Insurance is a legal requirement if you employ staff, and it can also cover volunteers.
- Cyber threats - Charities and clubs often hold personal data, making them targets for cybercrime. Cyber Insurance helps with the costs and disruption caused by data breaches, hacking or ransomware.
- Unexpected disruptions - If something like a fire or flood stops your organisation from operating, it can hit your finances hard. Business Interruption Insurance helps cover lost income and keeps things ticking over.
- Transport - If your organisation uses cars, vans or minibuses, you’ll need cover. Motor Insurance is a legal requirement and protects against accidents and damage.
Managing these risks takes a mix of good planning, strong risk management and the appropriate insurance. It’s always worth talking to an insurance specialist to make sure you have the level of protection required for your organisation.
Common mistakes to avoid
When managing insurance, there are some common mistakes to avoid to ensure the appropriate level of protection:
1. Underestimating coverage needs: A common mistake is not getting enough insurance to properly cover the risks your organisation might face. It’s important to take a good look at everything you offer and make sure you’ve got the appropriate level of protection in place.
2. Ignoring specific risks: If you don’t spot and insure against specific risks linked to what your organisation does, it could end up costing you. That’s why it’s really important to take the time to do a proper risk assessment and make sure you’ve got the necessary cover in place.
3. Not reviewing policies regularly: As your organisation grows or changes, your insurance needs might change too. It’s a good idea to regularly review your policies to make sure you’re still fully covered.
4. Missing the fine print: Insurance policies often come with exclusions and limits that can impact what’s actually covered. Taking a moment to understand these details can help you avoid any surprises later on.
5. Failing to document and report incidents: Keeping good records and reporting incidents quickly, makes it easier to sort out insurance claims. That’s why it’s important to have clear procedures in place for dealing with any problems when they happen.
6. Neglecting to train staff and volunteers: Making sure your staff and volunteers know about your insurance cover and how to manage risks, can really help prevent problems. And if something does go wrong, it means everyone knows what to do.
7. Not seeking professional advice: Insurance can be complex so it is important to speak with insurance professionals to make sure you have appropriate protection in place.
8. Assuming personal insurance covers you: Personal insurance policies typically do not cover activities conducted on behalf of an organisation. Separate coverage is often necessary.
9. Failing to consider cyber risks: As organisations increasingly rely on digital platforms, ignoring Cyber Liability Insurance can leave you vulnerable to data breaches and cyber-attacks.
10. Ignoring legal and regulatory requirements: Failing to comply with legal and regulatory insurance requirements can result in penalties and put your organisation at risk.
In summary
Insurance helps protect you and your organisation from things you didn’t see coming; like legal issues, cyber attacks or damage to property. Having appropriate cover means you’re better prepared. With volunteers, donations, and public trust on the line, it’s important to know what insurance you need and avoid common mistakes to keep your organisation safe in the long run.
To explore the types of insurance we offer and get a quote for your charity, club or society ring Arthur J. Gallagher Insurance Brokers Limited* on 0345 377 0002.
Lines are open 9am-6pm Monday to Friday, excluding bank holidays.
*Bank of Scotland Business Insurance Services are arranged and administered by Arthur J. Gallagher Insurance Brokers Limited. When getting a quote online you will be taken to Gallagher’s online site with a new privacy and cookie policy.