Insurance Case Study

A charity working with vulnerable people

A leading London based charity, our client works with children and adults with learning disabilities who have experienced abuse or trauma, as well as those who have abused others. Through psychotherapy, advocacy, campaigning and other support, their principle aim is to prevent abuse by providing training, consultancy and research.

With an annual income of around £1m, our client is reliant on core funding from the Department of Health and accepts referrals from primary care trusts, local authorities and other social service departments.

Highlights and challenges

Following a review of their current insurance risk register we identified that our client was incorrectly covered for the risks which could impact the organisation. We also undertook a risk management assessment which resulted in a number of key areas being identified where our client was lacking the cover they needed.

With a Public Liability limit of only £2m, we quickly identified that this was not sufficient to protect the client against the cost of potential claims, particularly when so many of their daily operations involved members of the public. Our risk management assessment also exposed a lack of abuse cover in their existing policy and in particular highlighted an abuse exclusion which had been missed by their previous advisers. The reputation of the charity and the charity reserves would been severely damaged in the event of abuse allegations, which would have left the client vulnerable to legal costs and compensation claims.

Through our review we were also able to highlight that the client was incorrectly covered for Professional Indemnity. They had been wrongly advised and had taken Medical Malpractice cover, when what they actually required was Professional Indemnity cover to provide them with protection against any claims of wrongful advice or counselling, and from negligence or breach of duty claims. Concerningly, we also identified a need for Trustee Indemnity insurance which had not been put in place.

How we were able to help

✓ Full risk management assessment to identify gaps and exposures

✓ Strategic advice to improve the client’s insurance programme

✓ Full market review and premium adjustment

✓ Access to tailored and specific charity policy wording

✓ Provided the Trustee board with peace of mind and assurance that they had appropriate insurance cover in place

✓ Access to our in-house Internal Audit and Risk Management team

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