Financial services provider Zurich has launched a scheme offering public liability insurance to small voluntary organisations and community groups for less than £10 a month or £75 a year.
Zurich said the policy would enable groups to purchase comprehensive public liability cover for a range of activities covering claims and losses of up to £10m.
A spokesman for Navca said: "As far as we understand, this is the first time such insurance has been available to community groups for less than £100 a year."
Kevin Curley, chief executive of Navca, said in a statement: "This is a brilliant new scheme that will meet an urgent need in the communities sector."
A spokeswoman for Zurich said that voluntary and community projects often failed to get off the ground because of the cost and complications of buying protection, which can sometimes involve going through the local council.