The charity sector, also known as the third sector, is big business in the UK. According to The Charity commission figures for 2018, there were 168,186 charities registered in the UK with a total annual income of £77.4 billion.
With many charities offering collection services, there are a considerable number of trucks and vans on the road, and a charity has to abide by the same legal vehicle insurance strictures that also face the private sector. Plus, for fleet managers and employers of staff, there are extra considerations.
If your charity work relies upon the use of cars, minibuses, vans or specialised vehicles (i.e. specially adapted vans or wheelchair accessible vehicles), you need to investigate the number of motor insurance options available to you.
Why Does my Charity Need Insurance?
Because of the diverse nature of their activities, the involvement of volunteers as well as employed, and the duty of care they must give to passengers, the charity sector does bring a whole new set of challenges for the motor insurance sector.
Charities are required by law to have insurance. It helps protect your charity’s money, reputation and any associated property against potential damage. Here are some of the reasons for needing insurance.
- You’ll be interacting with members of the public
- You may need travel insurance for any overseas journeys
- Hosting fundraising events
- Working with volunteers
- Interruption to your activities and /or loss of income
You’re legally required to protect your charity’s assets and resources, and to put in place specific insurance if you:
- employ staff
- •operate vehicles on public roads
Charity Minibus Insurance
This is a look at the basic minibus insurance, which is one of the most popular concerning the charity sector. Correct minibus insurance will make sure your charity is protected for all eventualities. Areas of minibus insurance include:
- Minibus breakdown cover - to ensure you’re not left stranded if the minibus breaks down with a group of volunteers or clients on board.
- Public liability insurance for minibuses - this is essential to protect you against claims in case of accidentally damaging property or injuring a member of the public during your charity outings. Insurance levels vary anywhere from £1 million to £10 million.
- Glass cover for your minibus – With more windows than the average vehicle, it’s worth investing in a glass cover.
- Minibus insurance for charity drivers - when choosing, your provider be mindful that your cover requirements are being met.
- Cover for all passengers – whether ferrying employees to and from various sites and charity shops or regular trips to the community centre, all passengers should be covered on your policy.
Essentials for Driving a Charity Minibus
If you are employing people to drive your minibuses or nominating a designated driver in school, it’s worth bearing in mind the following:
- The driver holds a full driving licence
- Ensure a Section 19 permit has been obtained for schools (if one is needed) or a PCV for hire and reward or taxi insurance. See https://www.gov.uk/driving-a-minibus for more information.
- The driver must have held a full driving licence for more than 2 years
- Legally, the minibus needs a minimum of third-party insurance cover
In general, for other vehicles on the road, your charity should consider the following coverage,
Third-Party: The most basic level of insurance. If you have an accident with another vehicle, and it’s your fault, the other vehicle would be covered, but not your own. Damage to your vehicle would have to be paid for by you. Compensation for injury or death of passengers travelling in either vehicle is also covered.
Third-Party Fire and Theft: This policy includes the cover provided above. But it also covers damage to your vehicle in the event of a fire, theft or attempted theft. You might need to pay for part of your own vehicle damage by way of the applicable policy excess.
Comprehensive: The most wide-ranging cover. It includes all cover provided above plus further protection. If you have an accident that leaves your vehicle damaged, you’ll be covered for the cost of repair, including the windscreen, even if you’re at fault. As above, the applicable policy excess may apply.
What About Public and Employers’ Liability Insurance?
If your charity owns or occupies land or buildings, or runs fundraising events, you need to consider public liability insurance.
This important cover protects your charity against legal claims from anyone who might be injured or whose personal property is lost or damaged as a result of your activities.
In many cases, employers’ liability is a legal requirement for charities who employ paid staff. It keeps you covered against claims from your employees if they’re injured whilst working for you.
- Insurance for at least £5 million
- To display your insurance certificate prominently in your premises
Many charities decide to take out employers’ liability insurance for their volunteers. They’re usually subject to similar risks as normal employees would be, and claims can get very costly.
As well as those covered above, you’ll find a number of other key insurance types to factor in, depending on what your charity does and who it involves. Alongside public liability, professional indemnity and employers’ liability insurance, you will need to consider buildings and contents insurance, legal expenses insurance and business interruption insurance.
For more information please contact Tradex on 0333 313 1111.