December 9, 2020

A breakdown of your charity’s Commercial Combined policy


What does a Commercial Combined policy look like for your charity?

As a charity trustee, director or someone with the responsibility of arranging the insurance policies for your charity, it is important to understand the covers in place at the moment and what could be needed. With this blog, I aim to help you along the way.

Yes, you may be thinking “my charity should be spending the money elsewhere” as, after all, every penny saved can go towards providing your service to your beneficiaries. However, insurance can provide peace of mind, so you’ll know if a claim does arise you will not be forced to allocate much larger financial resources in defence and compensation of a claim.

The point of insurance is to put your charity back into the position they were in prior to a claim.

What is Commercial Combined insurance?

Commercial Combined insurance is a combined package that comprises of a range of key covers – which may include Public Liability, Employers’ Liability, Material Damage and Business Interruption, among others. For the majority, this policy provides complete protection for your charity, and can be tailored to your personal range of work requirements.

Having one policy for multiple covers means you have one insurer responsible for claims your charity may face, leading to a smoother claims experience. You also have the added convenience of one renewal date, one set monthly or annual cost, minus any extra policies your charity may require. A Commercial Combined policy also comes with flexibility to remove or add on cover – such as Stock Cover, Professional Indemnity and cyber insurance. As your charity evolves, a commercial combined policy can adapt to fit your needs.

What does Commercial Combined insurance cover?
The most common covers that your charity should have in place are:

  1. Public Liability Insurance: This provides personal cover for legal costs from claims brought against you by members of the public or a third-party organisation. The policy will cover you for all sums which you may become legally liable to pay for damages in relation to: accidental bodily injury, accidental damage to property, costs of medical treatment and transportation costs incurred by the NHS, or your ownership of the charity’s building.
  2. Employers’ Liability Insurance: A legal requirement if you have any employees, be they full-time, part-time or temporary, volunteers should also be treated as employees under this cover. Employers’ Liability will pay damages and associated legal costs in respect of death, disease or illness caused to employees. Employers’ Liability comes with £10m as standard.
  3. Product Liability: This cover is normally paired with public liability. Product liability provides protection from loss, damage or illness caused by your goods. You could also be liable if the products bear the name of your business or if you’ve repaired or refurbished them. If your charity operates secondhand shops it is important to ensure your policy extends to secondhand goods.
  4. Material Damage Insurance: Often a charity’s biggest assets are the buildings they own. This is because of the cost to rebuild, but also the continuity of the charity’s operations. Material Damage protects your premises, contents, equipment, other specified property, stock in trade and tenants’ improvements against the threat from sudden or unforeseen events, such as fire, storm or flood.
  5. Stock & Contents Cover: In the event of deterioration or contamination of stored goods as specified in your policy, this cover will be used to replace the stored goods.
  6. Business Interruption Insurance: This covers you for loss of gross profit or gross revenue and/or increase cost of working following damage to your business premises, or loss of book debts following damage to accounting records at your business premises. This section is normally subject to certain limits., Extensions under business interruption can include: contract sites, denial of access, bomb scares and unspecified suppliers.
  7. Trustees, Directors and Officers: The covers the negligent decisions made by the people in the title. These decisions could range from not looking after the charity’s assets properly, to not ensuring procedures are being followed.
  8. Loss of Money: This covers your charity’s physical money while in transit and at sites: from a bank night safe; from your premises during and outside of business hours, and while stored in a safe; while stored in an employee’s home.
  9. Personal Accident Insurance: This provides compensation on an agreed scale, for death or permanent or temporary bodily injury. Compensation will pay your business a weekly sum of money if an employee or volunteer is unable to work following an accident.
  10. Legal Expenses Insurance: This tends to cover your charity in relation to any of the following: employment disputes and compensation awards, employee civil legal defence, legal defence, property protection and bodily injury, tax protection, contract disputes, debt recovery and tenancy disputes. Legal cover tends to only be accessible if the chances of winning the case are over 50%.
  11. Goods in Transit Insurance:  Hold ups on the road, accidents and theft are all unfortunate, especially without a suitable policy in place to provide compensation for delayed projects/replacement costs. Goods in Transit insurance can protect your products from any damage, while: in or on any vehicle operated by you, in or on any vehicle operated by hauliers on your behalf, travelling by parcel post, travelling by rail.

It is important for your charity to have the correct covers in place, as you never know when a claim may occur. When considering whether or not to purchase a certain area of cover, it is important to look beyond the price and consider what detrimental effects your charity could face if it has to take the hit for a claim, rather than the insurer.

For friendly, professional advice click HERE to visit our charity page and find out more.


Stuart Belbin Cert CII

Account Executive

Head of Charity division

M: 07736956221 E:

Stuart Belbin



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