As a charitable organisation, your focus is on helping others and making a positive impact in your community. However, even with the best intentions, unexpected legal challenges can arise. Legal Expenses Insurance is a vital safeguard, ensuring that your charity is protected financially and reputationally when unforeseen legal issues occur.
Our Charity Insurance and Social Enterprise Insurance experts here at WRS Insurance Brokers break down the key things you need to know about Legal Expenses Insurance and what this could mean for your organisation.
What is Legal Expenses Insurance?
Legal Expenses Insurance covers the costs associated with legal action, including solicitor fees, court expenses, and settlements, arising from various disputes that your charity might face. Whether you are dealing with employment disputes, contract disagreements, or regulatory investigations, this insurance offers peace of mind and helps you continue your work without disruption.
Why is Legal Expenses Insurance important for charities?
Charities often engage with a diverse range of stakeholders—employees, volunteers, beneficiaries, suppliers, and regulatory bodies. This broad interaction increases the potential for legal disputes. Legal Expenses Insurance ensures that your charity can respond effectively to claims, avoiding financial strain and protecting your reputation.
Here’s what it typically covers:
- Employment Disputes: Claims related to unfair dismissal, discrimination, or contractual disagreements with staff or volunteers
- Contract Disputes: Disagreements over terms, payments, or service delivery with suppliers, landlords, or service providers
- Regulatory Investigations: Costs associated with investigations by bodies such as the Charity Commission or HMRC
- Property Disputes: Issues arising from lease agreements, boundary disputes, or property damage claims
- Tax and VAT Disputes: Support for navigating complex tax-related issues or HMRC investigations
Examples of what Legal Expenses Insurance can cover
- Employment Dispute: A former employee claims unfair dismissal, alleging discrimination, leading to legal proceedings
- Contract Dispute: A supplier fails to deliver services as per the agreement, and legal action is necessary to resolve the issue
- Regulatory Investigation: The Charity Commission initiates an investigation following a complaint about the charity’s governance practices
What will happen if I do not have Legal Expenses cover?
Without Legal Expenses Insurance, your organisation could face significant financial and reputational risks. A single legal dispute can lead to costly legal fees and settlement expenses, potentially diverting funds from your mission. Additionally, the stress and time involved in handling legal matters can distract from your core activities.
How much does Legal Expenses Insurance for charities cost?
The cost of Legal Expenses Insurance for charities varies based on factors like:
- The size and scope of your organisation
- The level of cover you require
At WRS Insurance Brokers, we work closely with charities to tailor policies that suit their needs. Our expertise ensures you get the right cover without unnecessary costs.
Get Started Today
Contact the team to explore Legal Expenses Insurance options that fit your organisation’s needs. You can call us on 01206 760 780 or email hello@wrsinsurance.co.uk.
Alternatively, you can fill in the form to get a quote from the team by clicking the button below.
About WRS
At WRS Insurance Brokers, we are specialists in Charity Insurance and Social Enterprise Insurance, and our experienced team is passionate about the charitable sector. Our experience has taught us that one size certainly doesn’t fit all, and that every charity and not-for-profit organisation faces its own unique risks.
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.