Unity Insurance Services

Fundraising events - insurance considerations

Unity Insurance Services explains how, with the help of a specialist insurance broker, charities can understand the risks associated with their fundraising activities and protect themselves from claims and losses

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As a charity or not-for-profit organisation, fundraising is your lifeblood. Managing and mitigating the risks involved with fundraising can make sure that your efforts will generate the funds to keep your organisation thriving.

Managing the Risks

A risk assessment can help ensure your fundraising goes smoothly. Identify potential risks to prevent them from turning into serious liabilities or losses for your charity. Your activities may have unique risks such as working with vulnerable young people or the elderly or holding an event near wildlife.

Check your liability cover

Check that your charity’s public liability policy covers the activities at your fundraising event.  If not, a Special Event Public Liability Insurance policy provides broad protection for situations in which, as an event holder, your charity must defend itself against legal actions or pay damages for bodily injury or property damage to third parties.

Your fundraising may involve the sale of goods, especially food and drink to members of the public for which you could be held liable. Your Public Liability Policy may cover this, otherwise you should consider adding Product Liability Insurance.

Collecting Funds Safely

Keeping the money and the people collecting it safe should be a priority. To help ensure money is handled correctly:

  • Obtain any necessary licences, certificates or permissions before collecting money from the public
  • Regularly open all collection boxes and count the contents
  • Have at least two people involved in handling and recording the money
  • Find a secure place to collect, count and store the money
  • Bank all the cash you collect as soon as possible and without deducting expenses

Even with these procedures in place, what would you do if your hard earned funds were lost or stolen?

Money Insurance can cover the loss of money whilst unattended, from private addresses, and whilst being taken to the bank.

Event Insurance

Appropriate insurance covers for fundraising events are usually included in one policy.  Below are some of the circumstances and covers you should consider.

Your financial outlay if the event is cancelled

Many fundraising events involve considerable financial outlay. This may include:

  • Payments for publicity
  • Hire of marquees and other equipment
  • Purchase of perishable goods such as foodstuffs
  • Venue hire
  • Printing costs for tickets
  • A celebrity guest not attending

Some of your outgoings might be recoverable, many may not. Instead of a healthy return on your event, you could be facing a financial disaster.

Cancellation and Abandonment Insurance covers financial consequences in case of the event’s cancellation due to unforeseen circumstances beyond the control of the event’s host, such as inclement weather, fire, a speaker dropping out, strikes or disease outbreak.

Some policies also include cover for re-location or re-arrangement of the cancelled event. Typical non-standard exclusions include breach of contract, lack of attendance and failure to make all the necessary arrangements for a successful event.

If you are planning several fundraising events, you can arrange an annual policy to cover multiple events.

Paying for expensive prizes

Event organisers often offer promotions and expensive prizes that add excitement to their events. This could be a hole-in-one and roll-a-dice, to cross bar challenges and envelope picks to win a car or holiday.

Prize Indemnity is designed to help in the event that against the odds somebody wins the prize, the policy will cover the cost of purchasing the prize, thus reducing the cost to the event organiser.

Hiring equipment for your events

You may need to borrow or hire additional equipment for your events, which could range from sophisticated audio-visual systems to folding chairs. You may be liable if it is damaged, destroyed or lost while in your possession.

Property Insurance protects event equipment – whether it is owned, borrowed or hired for the event. The policy generally covers property while in transit to and from the event as well as during the event.

Getting the right protection for your charity fundraising

Policies can be less expensive if they are purchased far in advance, and premiums will depend on the time of year and the type of event.

A specialist broker, with their in-depth understanding of the charity insurance market, can not only recommend the right cover at the right price, but also the right insurer. You will have the added peace of mind that your charity will have the right protection in place for its fundraising activities.

To find out more about how Unity Insurance Services can protect your charity’s fundraising, call 0345 0407702.

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