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Fundraising – Insurance

Insurance requirements are an ara that often leads to confusion, yet it is of critical importance for a charity to understand what their obligations are in this area. Given the importance of insurance, it is strongly recommended that when planning any fundraising event or activity a charity should consult with their insurers to ensure they are adequately covered for the planned event or activity.

It is of equal importance that third party fundraisers e.g. members of the public, groups or companies organising fundraising events or activities on your behalf are made fully aware of the need to clarify whether their event or activity requires insurance cover and the need to arrange this cover if it is required.

NB Volunteers will assume they are covered under the charity’s insurance. It is the charity’s duty of care to communicate they are not covered for non produced (third party) events. The insurer will provide guidance on this. Clear communication to all new volunteers will help.

Charity and corporate insurance needs are the same within Ireland, however some specific differences would fall under the following:

Public Liability Insurance
Public liability insurance protects your organisation from loss or damage resulting from a claim for damages by a third party arising from negligence on your part.

Charity fundraising needs to be considered here:

• Produced events (charity run/organised): are events that are organised and managed by a charity. These events should follow all audit and insurance guidelines to ensure cover under your public liability. All produced events should be declared to insurers in advance. Volunteers are deemed staff for produced events or where volunteers are following / carrying out work under the guidance of the organisation once declared to insurers in advance.

• Non produced events (third party events) – are independent events where volunteers arrange the event without direct input from the charity. Non produced or third party events are deemed “uninsurable” for a charity to cover as the charity is not in control of the event and therefore can not
protect the event from negligence.
Employer Liability insurance

Employer liability insurance protects employers from liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices.

• This should be extended out to cover volunteers for all produced (charity run/organized) events and volunteers who are carrying out work on behalf of your organisation (e.g. volunteer office staff). This must be declared to insurers in advance.
• However volunteers may well fulfill some services using their own insurance cover (e.g. a volunteer driver driving their own vehicle). It is important that both parties are clear in these instances about who is providing the cover.

Other specific areas to consider:

• Hold Harmless: are often requested by venues for large volunteering events. These should always be forwarded to your insurers for review as they, in summary, hold your organisation wholly responsible for any loss or damage at that location. It is usually advised that charities should not agree to any hold harmless, but this may differ from insurer to insurer. Charities should never sign
Hold Harmless documents/clauses themselves.

• Custodial warranties – These are the cash limits per staff / volunteer. It is important to know what your warranties are to ensure cover in the event of theft. It is also important to advise any staff or volunteers handling money what these warranties are. This information is available from the insurer.

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