1. Community buildings in a changing landscape
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Community buildings in a changing landscape
Chapter 6

2. Chapter 6
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Insurance

3. Insurance Protect your charity’s assets and resources:
Buildings insurance
Contents insurance
Cover for third party liabilities:
Public Liability insurance
By law, if you employ ANY staff:
Employers’ Liability insurance
Charity trustees have a duty to protect their charity's assets and resources. All charities face risks, and insurance can be an appropriate way of protecting them against any loss, damage or liability arising from these risks.
Examples of types of insurance that might be needed to cover a charity's property against loss or damage are:
buildings insurance
contents insurance and
event insurance
Examples of types of insurance that might be needed to cover against a charity's third party liabilities are:
public liability insurance
If your community building employs ANY staff then Employers’ Liability insurance needs to be in place. By law this also applies to those employed on a casual or a temporary basis. For example this may be a cleaner or a caretaker.
It is important that certificates of insurance such as public liability insurance and employers liability insurance, are displayed in a prominent place for example on a notice board inside the building.
There are specialist insurance brokers who deal with community buildings and can offer a tailored package and if you complete Hallmark accreditation you may receive up to 30% discount on your community building insurance. Please contact RAY for further information regarding Hallmark accreditation.

4. Buildings insurance
The sum insured should be sufficient to meet the cost of:
Demolition work which might be necessary
Clearing the site
Professional fees (architect, surveyor etc)
Replacing the building in the same style etc as the original
Complying with any relevant planning requirements or building regulations
The trustees of your Community Building should normally take out insurance to cover the full reinstatement value of the building.
This means that the sum insured (that is the maximum amount that would be paid under the insurance) should be sufficient to meet the cost of:
any demolition work which might be necessary
clearing of the site
professional fees for example architect or surveyor fees
replacing the building in the same style as the original
complying with any relevant planning requirements or building regulations
The sum insured is the maximum amount that an insurer will pay under a contract of insurance. This means that it is very important that the sum insured is adequate. If a claim is made and the sum insured is not enough, the insurance company will only pay a proportionate amount of any claim, even if the value of the claim is below the sum insured.
An example might be where a property is insured for £10m but is really worth £15m, a claim for damage to half the property would only pay out up to £5m.
If the trustees ought to have bought more extensive cover, they may be liable to make good the shortfall out of their own pockets

5. Contents insurance You need to consider whether your insurance:
Should be on a “new for old” basis
Covers loss arising from theft
Should include cover for accidental damage
Covers specific items
Covers money in transit or on the premises
The duty to protect charity property extends to the contents of a building such as furniture, equipment and cash, and charities should have a suitable policy.
Trustees need to consider whether their insurance:
should be on a 'new for old basis‘
covers loss arising from theft
needs to include cover for accidental damage
covers specific items such as computers
covers money in transit or on the premises where appropriate

6. Public Liability insurance
Provides protection:
Against claims from members of the public for bodily illness/injury, loss or damage to material property incurred on the premises
Against claims arising under the Occupier's Liability Acts 1957 and 1984 – which place on the occupier of a property a duty of care in respect of visitors to, and trespassers on, their property
Public liability insurance will be vital for your Community Building as it offers legal liability protection:
against claims from members of the public for bodily injury/illness, loss or damage to material property incurred on the premises
against claims arising under the Occupier's Liability Acts 1957 and these Acts place on the occupier of a property a duty of care in respect of visitors to, and trespassers on, their property

7. Employers’ Liability insurance
If your community building employs ANY staff then Employers’ Liability insurance needs to be in place.
Employers must notify HMRC of personal details of every employee
Always make checks if taking on staff on a self employed basis – ask for their National Insurance number and check with HMRC
If your community building employs ANY staff then Employers’ Liability insurance needs to be taken out. By law you are required to have a minimum insurance cover of £5 million for injury or disease suffered or contracted by employees while carrying out their duties. This also applies to those employed on a casual or a temporary basis, for example this may be a cleaner or a caretaker.
Employers must notify HMRC of personal details of every employee. It is the responsibility of the employer to deduct income tax and National Insurance unless a certificate of exemption is in force.
Always make checks if taking on staff on a self employed basis – ask to see their National Insurance number and check with HMRC that they are registered as self employed. It is the employer (not the employee) who would be liable to pay any unpaid amounts if tax and NI is not being paid. HMRC can claim payments backdated up to six years.

8. For further information please contact RAY on 0845 313 0270