Risks expected to be covered:
Buildings and contents – fire and theft – up to reasonable rebuilding cost
Employers, Public Liability, Property Owners Liability
Trustees Indemnity and Legal Expenses
Historic evidence of employers’ liability cover should be maintained.
Insurance in all areas is not essential. “Charity trustees have a duty to protect their charity’s assets and resources” (Charity Commission Guide 49). The Trustee Act 2000 confers a power to insure property but it does not impose a duty to do so. Where there is a requirement under the trust deed, failure to insure will be a breach of trust. Otherwise in the event of loss the trustees and the church will need to justify their failure to insure.
It is important to read insurance documentation provided by insurers and their agents. At each renewal you may have a “Statement of Facts” to confirm which may require confirmation that all statutory regulations, including those related to health and safety and environmental issues are complied with. Further confirmations may be required in relation to each section of insurance, such as for property cover that the property is kept in a good state of repair.
If you would like any further information please contact your insurance advisers.