Government cuts mean rising management liability risks, says MGA
Underwriting agency CFC has launched a new insurance package for the not-for-profit sector.
CFC said it designed ExecSurance to address the growing reliance on volunteer work, trustees, and the potential for staff redundancies that organisations including charities, trade associations, leisure groups and schools face.
Senior management liability underwriter Kate Lyes said: “The role of a not-for-profit organisation is going through significant change and they are finding themselves more exposed than ever before. For years they have relied on income from government contracts and grants. Because of the economic downturn, they face government cuts and a reduction in public donations at a time when their services are more in demand than ever.
“The result has been a significant change to the way their services are being commissioned and financed. There is an increased reliance upon volunteer work, continual discussions of mergers with other not-for-profits and growing potential for staff redundancies. All this gives rise to management liability risks that must be addressed.”
The product combines management liability covers including trustee liability, employment practices liability, pension benefit plan liability, crime, cyber and privacy, and kidnap and ransom. It also includes more general covers, including professional liability, commercial general liability and property.