Originally set up in 2010, Small Charity Week runs from 23rd to 28th June this year, with a focus on financial resilience. Its goal is to publicise and promote all of the fantastic work done by these organisations and to support their ongoing development.
Financial resilience is a massive issue right across the charity and voluntary sector. It’s never easy to raise the funding required to provide essential services and to support those in need. But it’s never been harder to squeeze every penny’s worth of value out of that money. The reality is that costs are rising and demand for services is increasing right across the board.
Insurance is an essential aspect of financial resilience. It provides financial recompense for losses suffered from insured events and provides access to specialists who can help your organisation respond in a well-managed and effective way. And well-orchestrated responses reduce the financial impact of a loss as well as the time it takes an organisation to get things back to normal.
If you work for a small charity, forging strong links with your broker and insurer partners will also help you take steps to assess your potential exposures and to implement risk management improvements that’ll help prevent losses happening in the first place. It’ll also make sure you’ve got the right level of cover in place to give you the support needed if and when things do go wrong.
At Keegan & Pennykid, we work with a wide range of voluntary and charitable organisations. Here, we’ve detailed three examples of how their insurance came to the rescue and avoided them being out of pocket in the wake of a loss.
#1 IT equipment claim
Not long ago, a call came in from a client to report a damaged laptop. While working at home, the volunteer’s desk had collapsed and the laptop had crashed to the floor. Rather than bouncing, it broke, and a large crack to both the screen and casing left it unusable.
We asked the client to provide a photograph of the damaged screen, a copy of the original purchase receipt, and an inspection report and estimate for the required repair or replacement. The client duly submitted the information and following communication with their insurer a settlement of £799 was agreed to pay for a new laptop.
These types of losses are unlikely to bring your organisation to its knees, but they can have an impact on productivity and budgets if they’re regular occurrences. Could a review of your protocols around day-to-day laptop use reduce such losses within your own operations?
#2 Storm damage
In January 2025, Storm Eowyn blew into the UK, bringing with it gusts of up to 100mph. It damaged a client’s roof and detached a section of chimney flashing, which made it unsafe for members of the public using the pavement below.
To address the safety issue, the client commissioned a contractor to effect temporary emergency repair work and to provide a full estimate for the required works. Costs were in excess of £11,000 – with the scaffolding alone being £10,000.
The insurer assigned the claim to a loss adjuster who attended and subsequently validated the estimate. The adjuster agreed the loss was covered and would be settled by the insurer.
Such claims highlight the impact of unpredictable events such as storms and also underline the importance of keeping properties in a good state of repair. If you’re building isn’t well-maintained, insurers may contest similar claims on the grounds that it was your property’s poor condition that enabled the storm to cause damage.
#3 Leak from neighbouring property
A charity client recently got in touch to report water was pouring into one of its rented properties. It turned out there was nothing wrong with their property and the issue was due to major roof repairs carried out by an adjoining neighbour.
The neighbour had stripped off slates and installed new roof trusses. The reinstatement works were carried out with roof tiles as opposed to the original slate finish. This resulted in a different roof profile and a variance in height with the adjoining slate finish. The contractor failed to install a new zinc ridge capping along the adjoining length of the two buildings.
Torrential rainfall led to water finding its way into our client’s property and saturating the attic space and bedroom walls.
The client contacted the neighbour who arranged for the contractor to come back and complete the necessary roof ridging. Our client’s insurer arranged for a drying specialist to install dehumidifiers and blow heaters and dry out the property. The client’s own contractor arranged for the replacement of the damaged plasterboard and decoration repairs.
Our client’s property has been made good, but the insurer is now exercising its subrogation rights and is actively pursuing the third-party contractor to recoup the reinstatement costs, given its faulty workmanship was the cause of the loss.
Although our client was not at fault, they suffered major inconvenience and property damage. It was their insurance that made sure things were rectified quickly, and they didn’t have to wrangle with their neighbour or the contractor to get the problem sorted.
To make sure your insurance would respond in the same way, please get in touch with our expert team here at Keegan & Pennykid and we can talk through your charities own particular circumstances.
