Community Groups

Public Liability Insurance for Community Groups Explained

Running a small community groups comes with an inordinate amount of responsibility. Given the number of activities, gatherings, and events that must be planned, you should be concerned not only about having things run smoothly but also making sure you are protected in case they don’t. Purchasing a public liability insurance policy can give you peace of mind and safeguard your institution from the crippling costs that are associated with a lengthy lawsuit.

What it Covers
Public liability insurance will cover all the cost of injury and hospital treatment should you be found responsible for an accident. This includes claims made by the NHS and the ambulance ride if necessary. The policy will also defray the cost of legal representation, making the insurance company essentially responsible for defending your claim.

For instance, if you were holding a fundraising event and a patron injured themselves while at one of your booths, the public liability policy would cover their treatment and medical bills. If the patron decided you were acting negligently and decided to sue, the lawsuit and any resulting claim would be handled by the insurer. Anything from a slip and fall to food poisoning from a bake sale could result in a lawsuit, and it is important to ensure your community group is covered should something of this nature occur.

In addition, public liability insurance will cover the cost of property damage. If in the earlier example, the patron who slipped and fell did not injure himself, but dropped his computer, they may sue the community group for replacing the cost of his equipment, as well as compensation for any down time created as a result. If the hard drive was damaged and there were sensitive documents contained therein, the cost could be much higher than the price of the laptop.

Types of Community Groups

The amount of your premium will depend mostly on the amount of risk your insurance provider incurs. As different groups represent different levels of risk, many public liability insurers offer various tiers of cover. For smaller groups, there are discounted options available as well if you meet certain criteria. For example, an insurer might provide a lower rate to community groups that have the following:

  • An annual turnover of less than £10,000
  • Less than 100 members
  • All meetings are held in a hired premises
  • There is existing liability coverage for meeting or activity grounds
  • Less than or equal to 6 fund raising events per year
  • Less than or equal to 6 social outings or group events per year.

Coverage Costs

Most insurance schemes offer the choice of two levels of indemnity: £1 million or £5 million. However, for larger groups, an indemnity level of £10 million may be recommended.

It is also important to note that most insurance providers will have exclusions in their contracts. Notably, any event that includes fireworks will likely not be covered by the policy provider due to the standard hazardous materials clause. Be sure to talk to a qualified broker to ensure that all your events, meetings, and activities are covered by the insurance provided.