For charities, managing risk effectively is essential. However, unexpected incidents can lead to significant setbacks. In some cases, these can be avoided by having the correct Charity Insurance and risk assessments in place.
As we enter the new year, the WRS Insurance team have taken a look back at the most common claims made by our charity clients in 2025. Our Claims expert, Emma Jeffery, shares insight into the causes behind these claims and highlights how charities and community organisations can better protect themselves.
Property Damage Continues to Be the Largest Risk Area
Property Damage continues to be one of the largest claims categories in 2025, accounting for 38% of total claims, with an average cost of £9,866 per claim.
The most common property damage-related claims reported by charities in 2025 were burst pipes and/or water leaks, which accounted for 10.9% of all claims. This was followed closely by Theft at 9.1% of claims. Accidental Damage, Storm Damage and general Property Damage claims each represented 5.5% of total claims, while Glass Breakage claims made up 1.8%.
This reflects last year’s findings, where property-related claims made up a significant proportion of reported activity, particularly those involving burst pipes and water leaks. While 2025 saw a reduction in the number of storm damage-related claims, property claims continued to represent a substantial share of overall claims activity.
Burst pipes and water leak claims remain a key driver of property losses. Costs and impacts for charities can often escalate due to secondary damage, prolonged repairs and disruption to operations. As highlighted in our 2024 findings, even relatively minor issues can quickly develop into costly claims if left undetected.
Early detection systems like Leak Safe can significantly reduce the impact of water leaks. These systems can detect leaks early and alert you before damage escalates.
Additional prevention tips include insulating exposed pipes to protect against freezing temperatures and regularly inspecting plumbing and roofs for signs of wear and potential leaks.
For further guidance, read our blogs “Managing Cold Weather Risks for Charities and Community Organisations” and ”Flood safety advice for your property”.
Theft claims often arise from opportunistic incidents rather than organised crime, particularly in premises that are open to the public or used by multiple groups.
Charities can reduce the risk by ensuring doors and windows are securely locked, installing and maintaining intruder alarms and CCTV where appropriate, and limiting access to high-value items.
Keeping an up-to-date inventory of equipment and ensuring cash handling procedures are clearly defined can also help deter theft and support claims if an incident does occur.
Legal Expenses Claims increasing
In 2025, Legal Expenses claims accounted for just over a third (38%) of all claims, placing them level with property damage claims by volume. There was also a noticeable increase in the use of our Charity Insurance Legal Advice Line compared to 2024.
Legal claims commonly arise from situations such as employment disputes, disagreements with contractors or suppliers, or the need for advice around governance and regulatory responsibilities. As explored in our guide on why charities need legal expenses insurance, these claims are frequent, although they typically do not reach the same financial level as major property loss claims.
While legal risks cannot be eliminated entirely, many Legal Expenses claims arise from issues that escalate due to delayed action or unclear processes.
We advise our clients to contact us first before approaching any solicitors, since this action might render them ineligible for any cover under the Legal Expenses policy, and such costs cannot be recovered.
Seeking early advice via a Legal Advice Line/with your Charity Insurance provider, maintaining clear employment and governance policies, keeping accurate written records and regularly reviewing contracts can all help charities resolve disputes at an early stage. Providing trustees and managers with basic governance and employment training can further reduce the likelihood of legal issues developing into formal claims, helping to protect charitable funds and minimise disruption.
Other Notable Claims in 2025
While Employers’ and Public Liability claims were among the most expensive on average in 2024, the 2025 data points to a growing reliance on legal support earlier in disputes, which may help limit larger losses but also reflects increasing governance and regulatory pressures across the sector.
Other claims, including Employers’ Liability, Public Liability, Professional Indemnity and Business Interruption, such as injury claims, disputes or loss of income following property damage, made up a smaller proportion individually.
Overall, the data continues to show that everyday property and liability exposures remain the most significant risks for charities, reinforcing the importance of strong risk management fundamentals.
Final Thoughts from Emma Jeffery:
“The 2025 claims data builds on trends seen in 2024 rather than changing the narrative. Property damage continues to be the costliest area of risk, while legal claims are becoming increasingly common. By understanding where claims are most likely to arise, and which ones carry the greatest financial impact, charities can take practical steps to reduce exposure and ensure their insurance remains appropriate.”
If an incident occurs, knowing what to do next can make all the difference. You can read our blog: “What to do when an incident happens” outlining the immediate actions you should take if the worst were to happen.
Protecting your charity
Charity insurance is a critical safety net for charities and community organisations, helping to mitigate the financial impact of unforeseen events. By understanding these common claims, your charity can take proactive steps to minimise risks and ensure you have the right cover in place.
For more information, or to review your current insurance policy, contact us today by calling 01206 760780 or emailing hello@wrsinsurance.co.uk, or you can get a quote online here.
About WRS Insurance Brokers
We’ve been helping charities of all sizes with their insurance for over 40 years.
WRS is part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.