What is entity defence cover?
While most charities and community groups recognise the importance of having professional indemnity and public liability cover, few are aware of the importance of having entity defence.
The entity itself (i.e. your charity) can be put at risk through the actions of trustees, employees and even volunteers, and entity defence covers against a wide range of proceedings that can be made against the charity itself including investigations, allegations of breach of contract and corporate manslaugher.
What sort of situations can entity defence help to deal with?
Entity defence insurance is designed to handle proceedings against the organisation - or entity - as opposed to claims made or proceedings issued against individual trustees (which are covered by trustee indemnity insurance).
To give an example of a worst-case scenario, where someone has died as a result of inadequate training or health and safety procedures, the Crown Prosecution Service might bring a charge of corporate manslaughter against the organisation, and entity defence would pay for the cost of defending that charge in court.
Happily, however, such cases are rare. Entity defence is more commonly used to pay for the cost of handling investigations by the Charity Commission, defending cases of breach of contract or pollution, and paying for costs associated with investigations by the Health and Safety Executive.
How entity defence can protect your reputation
In the event that claims or charges are laid at the door of your organisation, the most immediate damage might be to its reputation rather than its bank balance. Pollution, investigations and corporate manslaughter can attract the interest of the press and few trustees of small charities have experience of handle these volatile, tricky situations.
That's why it is worth looking for a policy that includes a public relations crisis management service, such as Markel's charity insurance.
After all, whether you are a charity, a community group or a public company, the damage caused to your reputation could have serious and lasting repercussions. So as soon as allegations or investigations covered by entity defence present a threat to your charity's future, we can instruct expert public relations professionals to will deal with the media on your behalf, ensuring that your reputation is protected as far as possible.
Entity defence is an important form of protection for organisations of all sizes, with cover available from £6 a month. Get a quote now or call us on 0800 640 6604 to speak to one of our charity insurance experts.