Recent news about British, American and French aid workers being targeted in Pakistan and Afghanistan have highlighted the risks charities face.
Getting the right insurance cover to protect staff and volunteers remains a challenge, particularly for cash-strapped organisations.
For charities operating in war torn regions, personal accident and travel cover can be difficult to find. “There are certainly some countries and regions where charities find it very difficult to get cover for workers,” says Kelly Sinclair, client Services manager at Aon.
The main problem is expense, according to Sinclair, who says: “There are few in the market that will offer cover as it is specialist.”
The nature of the risks an aid organisation faces means that underwriters need a global reach. “It is the international underwriters such as Lloyd’s and the global insurers which offer the cover because there needs to be a good understanding of the risks in the particular country,” Sinclair says.
Charities operating in war zones should be conscious of whether their policies include corporate manslaughter, adds Sinclair. “They need to be looking carefully at how they cover their duty of care overseas.”
The cost of cover can be prohibitive for many different types of charity. Diane Caplehorn, associate director for Heath Lambert Affinity Partnerships, works with medical charities.
She is concerned that those with medical conditions may run the risk of travelling uninsured, because they don’t think affordable cover is available. “There are a lot of people who have had bad experiences and nobody knows where to go for the information.”
The cost of cover can be a tough pill for charities looking to reduce costs, but to be without adequate insurance could be extremely expensive, warns Caplehorn.
“I know situations where people have had to take out loans to pay for their treatment.”
Developing the dialogue between insurers and charities is helping to improve the level and affordability of cover, said Chris Pitt, spokesman for specialist church and charity insurer Ecclesiastical. “There’s been a gulf between insurers and the charity sector in the past purely because of a lack of understanding of what charities do,” he explains.
Charities have been nervous about talking to insurers because they worry that the more information they give, the more their premium will go up. The opposite is in fact true, says Pitt.
With more detailed information about the specific risks aid organisations and other charities face, policies can be tailored to better fit their needs.
