Frequently Asked Questions about Charity Shop Insurance
1. Why do charities and non-profit organizations need insurance?
A charity or voluntarist organization exists to provide a service to the community and raise funds for that purpose. Even though they don’t make a profit, charities still have a responsibility to their volunteers and employees as well as the general public. If the organization does not have adequate insurance, they might be liable for any damages or costs resulting from injuries sustained at their premises, especially if they operate a retail shop. While shopping for insurance, remember that shop insurance is not necessarily the best. The most important thing to do is to get adequate coverage.
2. Does Employer’s Liability Insurance have to be compulsory?
Employers in the UK are legally required to purchase employer liability insurance. A current certificate should be visible where anyone is likely to see it. Past certificates should also be preserved for up to 40 years.
3. Public Liability Insurance
While public liability insurance does not have to be purchased by charities or non-profit organizations, it is recommended. This will provide protection against claims involving third-party damage and loss. The charity may be held responsible for the legal costs and the actual compensation if a customer falls on a carpet that is not covered by public liability insurance.
4. What is the Best Insurance Policy?
All items you are insuring must be covered for the full cost to rebuild or obtain a replacement. In this way, you can be sure that you receive the right amount of money in case of a claim. Your insurance provider will likely reduce your claim amounts if you have underinsured. You will be responsible for the difference.
5. What are the best ways to insure items that have been removed from our premises?
Many businesses and shops need coverage for ‘offsite’ items. It is a good idea to purchase an ‘all-risk’ policy. You can purchase policies for items in any country, whether it is in Europe or the UK.
6. Do Volunteers get covered by Employer’s Insurance?
Yes. As long as your insurer knows the nature of your company, coverage will be provided for any injury or damage sustained by volunteers in the performance of their duties.
7. What happens to us if we do dangerous or extreme activities?
To help them assess the risks, all information should be given to their insurance provider prior to the event. Although you should be able get insurance for most events, there may be an additional premium.
8. Do we need public liability insurance for an event being held in premises that is covered by the owner’s/landlords own insurance?
The premises insurance does not cover the owner’s liability for injuries or damages caused by their negligence. This insurance does not cover activities or events. It is highly recommended that you have adequate protection. Many 3rd-party venues will require proof that you have public liability insurance before an event can take place.
9. Are we automatically covered for activities that take place off the premises?
No. All information should be given to your insurance provider prior to the event so they can provide advice on the best coverage and any terms and conditions.
10. What is Employment Practices Liability Insurance, and why does a Voluntary Organisation require it?
Recent changes and revisions in employment law have made it easier for employees who are unhappy to file a complaint against their employer. Voluntary organisations and charities can now arrange employment practices liability coverage in light of these changes. This will protect against legal costs and expenses as well as court orders for a wide variety of disputes such as discrimination based upon an individual’s race. Insurance will also protect against unfair dismissal or constructive firing of employees, as well as other potentially damaging allegations.
These elements will be offered as “add-ons” to cheap shop insurance policies. This may lead to a higher premium than the price quoted for the basic policy.
