Insurance

Trustees should be aware of the benefits of taking out insurance for the charity and the implications of doing so. They must ensure that appropriate insurance is taken out where it is a legal or other requirement to do so.

Some types of insurance are compulsory by law. There may also be a duty in the charity's governing document or in contracts or other agreements to purchase insurance.

There has been concern in recent years about the high cost of taking out insurance. This has led to some trustees to question the need for certain types of insurance.

Where a form of insurance is not compulsory, trustees should form their decision to take out insurance as part their risk management exercise.