CIOs and CICs

Charitable Incorporated Organisations.

A Charitable Incorporated Organisation (CIO) is the latest form of legal entity designed for non-profit organisations. The Office of the Scottish Charity Regulator began registering Scottish Charitable Incorporated Organisations (SCIOs) in April 2011 and the CIO status became available to charities in England and Wales on 4th March 2013.

Community Interest Companies (CICs)

Community Interest Companies (CICs), which were formally recognised in 2005, have had a range of structures from social firms, co-operatives, and mutual organisations to community enterprises. Community Interest Companies (CICs) have primarily social objectives with surpluses being principally reinvested in the business or in the community.

The insurance needs of a CIO and CIC will depend upon the organisation’s activities and may include cover for property, events, volunteers, and liabilities such as professional indemnity, trustees’ indemnity, public liability, and employer’s liability.

Our dedicated team is on hand to discuss specialist tailored cover with expert support and advice for your organisation. As a specialist third sector insurance broker we have access to a range of specialist insurers as well as our own Encompass policy which has been specifically designed to meet the needs of the third sector.

We have created the Encompass Guide to Insurance for the members of your team who have the responsibility of arranging your Organisation’s Insurances. For an explanation of the various covers available, please follow the link to go to the Encompass Guide to Insurance.

CIC vs CIO: Understanding the Difference

If you're setting up or running a third-sector organisation, choosing the right legal structure is one of the most important decisions you'll make — and understanding the difference between a CIC and a CIO is the place to start.

CIC vs CIO: What's the difference?

Charitable Incorporated Organisation (CIO)

A CIO is a legal structure designed specifically for charities. It gives your organisation the protection of limited liability without the administrative burden of registering as both a charity and a company. CIOs are regulated by the Charity Commission in England and Wales, or the Office of the Scottish Charity Regulator (OSCR) in Scotland — where the equivalent is known as a Scottish Charitable Incorporated Organisation (SCIO).

CIOs are best suited to organisations with clear charitable purposes and a need for formal charitable status — including tax exemptions and eligibility for Gift Aid.

Community Interest Company (CIC)

A CIC is a type of company limited by guarantee or by shares, established for community benefit rather than private profit. CICs are regulated by Companies House and the CIC Regulator. They are not registered charities, but they operate under an asset lock that ensures surpluses are reinvested in the community.

CICs are typically chosen by social enterprises, community businesses, and organisations that need a more commercial or trading structure while still prioritising social impact.

We would strongly recommend that your organisation seeks advice on its insurance needs and uses insurance as part of its overall risk management programme. We would also recommend that your organisation has a business continuity plan in place.

For further information or advice about Insurance for CIOs or CICs or to get a quote:

0131 225 6005

Insurance for CIOs and CICs

Whether you're a CIO, SCIO, or CIC, your insurance needs will depend on your organisation's activities, employees, assets, and liabilities. Cover typically includes:

Public liability — protecting against third-party injury or property damage claims
Employers' liability — a legal requirement if you employ staff or regular volunteers
Trustees' or directors' indemnity — protecting the people responsible for running your organisation
Professional indemnity — if your organisation provides advice, training, or professional services
Property and contents — for your premises, equipment, and assets
Events insurance — if you run fundraising or community events

As a specialist third-sector insurance broker, we work with a panel of insurers experienced in covering both CIOs and CICs. We can also provide cover through our own Encompass policy, designed specifically for third-sector organisations.

	CIO / SCIO	CIC
Registered charity	Yes	No
Regulated by	Charity Commission / OSCR	Companies House + CIC Regulator
Gift Aid eligible	Yes	No
Asset lock	Yes	Yes
Can trade commercially	Limited	Yes
Tax exemptions	Yes	No

Get advice from a specialist

Our team understands the nuances of third-sector structures — including the difference between a CIC and a CIO and how it affects your insurance requirements. We'll make sure your organisation has the right cover in place.