Guidance

UKSAR Insurance considerations in the volunteer sector

Published 21 March 2025

Introduction

The following information is guidance to take into consideration when looking to procure insurance for any volunteer work. This information reflects working group discussions surrounding insurance. It is provided as suggested considerations on the issues that could be looked into when organising the whole area of insurance cover. Every organisation must take a personal view on the insurance cover required.

Insurance for the volunteer sector can be complex due to the nature of the activities undertaken therefore a good relationship with an insurance broker could enhance the cover offered. Establish a strong relationship of trust and openness and if there is uncertainty over coverage or policy wording ask the insurer either through a broker or independently. A special endorsement could be possible and agreed in order to override exclusions. It takes time to gain a full appreciation of the risks involved so continuously switching providers may not give you the full cover you require.

It is likely that tasking authorities will want a clear understanding of insurance provision secured by volunteer partner organisations.

Considerations

Duty of care and insurance

All organisations owe a duty of care in law to all its members and the wider public not to cause injury or loss. The existence (or not) of insurance cover does not affect that underlying duty of care. In the event of liability arising that require damages and legal costs to be paid, that liability will rest with the named individual or organisation found to have been in breach of their duty of care.

Purpose of insurance

The purpose of adequate insurance cover is to provide financial means to investigate, defend or deal with any claims. This ultimately means the insurance picks up damage and/or legal costs, thereby insulating the team members and the wider organisation from financial liability.

Limit of indemnity

Organisations should look carefully at the limits of indemnity under their cover and decide if this provides adequate cover or not. This is entirely an issue for the organisation to decide and cannot be delegated to the broker to set, although their advice may assist. All insurance policies (with the exception of motor policies) will impose a limit of indemnity; this obviously limits the financial exposure of the insurer, not their insured. If an award of damages breaches the limit of liability, the named defendant(s) remain liable for the shortfall in cover. This is a decision for the organisation, its trustees and the membership seeking cover. Insurance brokers might offer advice, but it is strongly recommended that legal advice is taken periodically to benchmark your cover against the nature of the activities undertaken and the associated risk.

Limit of Indemnity - Catastrophic injury

As broad guidance only, and individual circumstances can affect this, an award of damages for a 20-year-old tetraplegic requiring 24/7 care, could, with legal costs, reach £40m or more (as of 2023). This is driven largely by the cost of care and the manner by which awards for future losses are calculated. If an organisation undertakes any activity which, if things went wrong, could result in catastrophic injury to one of the team or the general public then the Limit of Indemnity (LOI) must reflect this risk.

Level of damages

The level of damages a Court might award is made regardless of the existence of adequate insurance cover. If a judgement of the court is not discharged in full within the time stipulated, then the named Defendant(s) will be entered in the judgements register which in turn will impact their credit rating. Information on County Court Judgements.

Excess of loss cover

Whilst primary insurers may limit their exposure, it is possible to buy additional tiers of cover called “excess of loss” to provide sufficient cover in the aggregate.

Members using their own vehicle

If members use their own vehicle for travel to and from volunteer activity, does the ABI commitment to volunteers assist the organisation? There are limits to this document that you need to be aware of. If in doubt every team member must be reminded to disclose the volunteer use annually to their own insurance company to ensure cover.

Business Description and extent of cover

Give careful thought to how any policy describes your business and/or volunteer work and ensure it accurately describes what you do. All activities need to be considered such as events and fundraising, not just the primary work the organisation is known for, such as search and rescue. If there are limits to the cover consideration needs to be taken on how an organisation manages this. A claim arising from an activity that an insurer decides after the event was not covered could leave the organisation with no cover and therefore potentially a large financial burden.

Brand considerations

Whilst insurance is designed to provide a financial safety net, be aware that any claim could carry negative publicity. The organisation will be the named party in any proceedings, even if the insurer is dealing with the claim. The claim will be the focus and concern of the insurer and not necessarily your brand reputation. Understand what the insurer can and cannot do without your agreement. Consideration what measures you impose through brokers to protect your ability to manage reputational risk.

Conditions precedent

These need to be reviewed closely. By their name, these conditions must be adhered to the letter or risk repudiation of cover.

Conditions and exclusions

The membership need to have a broad understating of the cover and its limitations. If there is no cover for x, then everyone needs to be informed.

Legal costs

• Third party legal costs - check the extent of the cover provided. Is the limit of indemnity (see above) inclusive of or exclusive of such costs.
• Own legal costs - are these limited and if so in what way. Conditions to this cover need to be reviewed.
• Regulatory or police prosecution - is this covered and are there limits to consider.

Dual insurance

Be aware of any overlap in cover between your policies, or your policies and cover held by individual members, for example medical cover. Identify areas of dual insurance and understand the implications for both the organisation and individual.

Contractual liability and contractual indemnities

Organisations will have to sign contracts, business leases, SLAs, memorandum of understandings etc. in every such case it is imperative that the terms are referred to the relevant insurer as brokers to check that cover will not be adversely affected.

Types of cover to be considered

A thorough review of all activities should be undertaken in partnership with Brokers to determine the nature and extent of insurance coverage required and/or available. Some risks may be considered so extreme that a decision could be taken not to secure cover for that risk, however this must always be an informed decision, and the membership advised in advance.

The following list is a guide on minimum cover however is not exhaustive. There could be other types of insurances that need to be considered and these will need to be looked into depending on the nature of the activities undertaken by your volunteer work.

What cover	Considerations
Public Liability cover	All organisations must have public liability cover. This protects against any claims by third parties, subject to coverage for all activities undertaken. Note that catering activities can carry very high exposure in the event of food poisoning.
Employers Liability cover	Organisations who employ staff are legally obliged to secure Employers Liability cover. Additionally organisations who do not employ staff but whose activities risk injury to their own team should secure employers liability cover for their volunteer team members. This protects the insured team members and the team itself.
Abuse cover	Depending on the sector, cover for abuse claims may be necessary.
Professional Negligence cover	Required if giving professional advice, training or guidance.
Product Liability cover	Needs to be considered if producing or endorsing products.
Medical Malpractice cover	Required if teams are treating people medically. This in turn needs to cater for scope of practice and the cover medical professionals have through their governing bodies.
Travel and/or working abroad cover	Think of travel outside the immediate jurisdiction and whether your activities will be covered in other countries. The scale of risk needs to be understood as different jurisdictions may value claims differently.
Motor cover	Consider where your vehicles will be driven. If taken off the public highway then motor cover needs to be extended to cover this.
Pollution risk	Most policies limit their exposure to such claims. Check the limits and decide if you are content with those limits.
Cyber cover	Cyber-attacks and risks are increasing therefore an understand what your exposure is crucial to make sure the correct cover is procured. Consider data breaches, financial risks etc. There may be technical steps you can take to mitigate these risks however you will need to understand if these are viable for your organisation and then match your cover accordingly. Data Subject Access Requests are also on the increase therefore these may need to be considered on a policy.
Marine cover	This could include cover for activities in the water and/or cover for watercraft. Many public liability policies limit such cover and specialist marine cover is required for third party risks.
Equipment cover	Consider this for when equipment is on and off base. Review what limits of cover and excess are applied. Obtain cover that is adequate for the value of the equipment issued to the members.
Buildings and Contents cover	Review the cost of the building and take into consideration fluctuating running/maintenance costs due to the age of the building. Also consider what type of equipment will be stored there and/or of there are plans to change storage location for equipment. Carefully consider the value of equipment stored in each location.
Drone cover	When flying drones you will need to ensure that you are covered for both Public Liability and Employers Liability. Most Drone insurance does not automatically cover for Employers Liability and the General Public and Employers Liability Policies might not cover for use of Drones.

Conclusion

Insurance needs strategic thought, careful consideration and review. Ideally assisted by an informed and connected Broker with legal input. If you do not have a broker you may still need legal advice.  All eventualities need to be considered so that you are covered should a problem arise. The aim for any volunteer organisation is to be ahead of the game, thereby protecting both their team and themselves.