How to Reduce Charity Insurance Costs

Charity Insurance is an essential part of protecting your organisation, but that doesn’t mean you should pay more than you need to. Whether you’re a small local charity or a larger not-for-profit, there are steps you can take to help manage your insurance costs without compromising on the cover your organisation relies on.

From reviewing your policy each year to strengthening your approach to risk management, small changes can make a difference over time. In this guide, we share six practical ways to help reduce your insurance premiums while ensuring your organisation remains appropriately protected.

1. Check your insurance regularly

It’s easy for an insurance policy to renew each year without considering whether your charity’s circumstances have changed. However, your insurance needs can change as your organisation develops.

For example, you may have:

• Changed premises
• Purchased or sold equipment
• Introduced new services or activities
• Increased or reduced your number of employees or volunteers
• Experienced changes in income
• Stopped activities that were previously covered

Regularly checking your cover can help ensure you’re paying for the protection you actually need, while also identifying any gaps that could leave your charity exposed.

It’s worth reviewing your policy before renewal and speaking to your insurance broker if your circumstances change during the policy year.

2. Manage your risks and reduce the likelihood of claims

Good risk management can help reduce the likelihood and potential impact of incidents that could result in an insurance claim.

There are many practical steps charities can take, depending on the risks they face. These could include:

• Carrying out regular risk assessments
• Keeping buildings, equipment and vehicles properly maintained
• Providing appropriate health and safety training
• Having clear safeguarding procedures
• Making sure employees and volunteers understand their responsibilities

Taking a proactive approach to risk doesn’t guarantee lower insurance premiums, but it can help reduce the likelihood of incidents, protect your employees, volunteers, beneficiaries and reputation.

3. Keep your sums insured accurate

It’s important to make sure the amounts you’re insured for accurately reflect the value of your charity’s property and other assets.

Being underinsured could mean you don’t have enough cover to fully recover your losses following a claim. On the other hand, overstating the value of your assets could mean you’re paying for a higher level of cover than you need.

Depending on your organisation, this could include reviewing:

• Rebuild costs
• Contents and equipment
• Specialist equipment
• Stock
• Business interruption sums insured

Regularly reviewing these figures can help ensure your policy reflects your charity’s current circumstances.

4. Review your policy excesses

Your policy excess is the amount your charity agrees to contribute towards the cost of a claim.

Depending on the type of cover, choosing a higher voluntary excess may help reduce your insurance premium. However, this isn’t necessarily the right option for every charity.

Before increasing an excess, consider whether your organisation would be able to comfortably meet that cost if you needed to make a claim. A lower premium isn’t necessarily better value if the excess would put additional pressure on your charity’s finances following an incident.

Your insurance broker can help you understand how different excess levels could affect your premium and the amount your charity would need to contribute towards a claim.

5. Consider how you pay for your insurance

The cost of insurance isn’t just about the annual premium. For some charities, being able to spread the cost can make budgeting for insurance easier.

WRS’s online Small Charity Insurance platform is available to eligible charities and not-for-profit organisations with an annual income of up to £250,000. Payments can be made by Direct Debit from £10 per month, helping eligible organisations spread the cost of their insurance throughout the year.

The online policy includes Public and Products Liability, Employers’ Liability and Trustee Indemnity Insurance and Directors’ Indemnity as standard, with additional optional covers available.

Get an instant online quote to see if your organisation is eligible.

6. Work with a specialist insurance broker

Every charity is different, and the insurance you need will depend on factors such as your activities, premises, employees, volunteers and the services you provide.

A specialist charity insurance broker can help you understand the risks your organisation faces and identify the types and levels of cover that are appropriate for your circumstances. This can help you avoid paying for cover you don’t need, while making sure important areas of risk aren’t overlooked.

The aim isn’t simply to reduce the amount you spend on insurance, but to make sure your cover remains appropriate for your organisation and provides protection where you need it.

About WRS

WRS Insurance Brokers has specialised in arranging insurance for charities and not-for-profit organisations for more than 40 years. We understand the unique risks the sector faces and take the time to recommend cover that’s tailored to your organisation’s needs.

Call us on 01206 760780 or email hello@wrsinsurance.co.uk to speak to one of our specialists.

WRS is proudly part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.

Insurance is subject to terms, conditions, limitations and exclusions. This guide is intended for general information only and does not constitute advice or a recommendation.