It is essential that voluntary organisations are covered by suitable insurance. Voluntary management committees are responsible for the people, their working environment and the property of the organisation and this includes the adequate provision of insurance which complies with relevant legislation.

The cost of any type of insurance partly depends on the risk. Insurers will require quite a lot of detail about the organisation and/or the individuals involved in it in order to offer a suitable policy and a price. 

If organisations or individuals are concerned about the type of details they are being asked for they can contact the Financial Services Authority (FSA) for advice.

Under statutory regulations there are constraints on who can provide information and advice about insurance. What follows is therefore a simple summary of the main obligatory, recommended and optional forms of insurance considered relevant to voluntary organisations. SCVO endorses the Encompass policy specifically designed for voluntary organisations by Keegan & Pennykid (Insurance Brokers) Ltd. The extensive Encompass guide to the areas that voluntary organisations should consider insuring (and which the Encompass policy covers) is available on their website (see links below). We recommend reading that guide as well as this web page before taking out or renewing any insurance policy.

Under the Employers Liability (Compulsory Insurance) Regulations 1998 anyone who employs staff must insure against any claims by the workers for injury or disease and display the certificate of insurance prominently at the organisation's office. 

If you own and operate a vehicle on the public highway you must effect Third Party cover as a minimum, as required by the Road Traffic Acts.

If you operate certain types of pressure or lifting equipment, it must undergo statutory inspections at pre-determined intervals.

Public liability insurance covers injury, loss or damage caused to Third Parties as a result of the organisation's negligence.

Protection against claims for negligence arising out of advice or information provided by the Organisation.

Covers specified legal expenses that may be incurred in defending or pursuing certain types of action e.g. Employment disputes.

Fidelity insurance can be taken out against staff or volunteer dishonesty.

Trustee Indemnity/Directors & Officers Liability insurance protects members of the voluntary management committee from personal liability with respect to claims related to their actions in their role as committee members or Directors and Officers if the Organisation is a Company Limited by Guarantee.

Accident and Sickness insurance may cover the cost of paying sick pay to staff or for replacement personnel.

Property & Equipment insurance can include buildings insurance (which can cover tenant’s Improvements to Leased or rented premises), contents insurance and all Risks Insurance (which will cover portable property which may be taken out and about.

Other Types of Insurance:

Events. More often than not this will mean fundraising events but whatever the purpose of the event this insurance can cover a variety of activities not usually undertaken by organisation.

Some things to remember when buying insurance:

• Types of property are sometimes referred to using legal phrases. ‘Heritable property’ means buildings and land and ‘moveable property’ means assets that can be moved e.g. minibus, computers or furniture.
• Check the policy and be absolutely clear that it covers the risks you believe it should
• Take professional advice from people with experience in the sector.
• You can only compare quotations if they are on an identical basis to the existing cover. Differences should be separately costed for clarity.
• Take advantage of specialist schemes where possible – usually arranged through Insurance Brokers.
• Review the insurance situation regularly.
• If the organisation engages in any different kind of work or activity the Insurers should be informed immediately.
• The Association of British Insurers (ABI) can provide general advice and details of insurance firms that specialise in given areas of work. 

The UK Government formed the Insurance Cover Working Group (ICWG) in 2002 to consider insurance issues for the voluntary and community sector. A research report was written for that group available at and in response the Home Office produced a Programme of Action. See links below.