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Our specialist fidelity insurance can protect your charity, club or community group against fraud, theft or dishonesty by volunteers or employees.
Fidelity insurance protects organisations against financial losses caused by dishonest or fraudulent acts committed by people they trust. For charities, community organisations and businesses that rely on employees, volunteers, or trustees, this cover plays a key role in safeguarding funds and maintaining confidence.
Whether you handle donations, grants, or membership income, even a small loss can have serious consequences. Fidelity insurance helps protect your organisation’s finances if money or assets are stolen or misused internally, providing reassurance to trustees, stakeholders, and funders that appropriate controls and protections are in place.
Cover at a glance:
- Cover for theft or fraud by employees or volunteers
- Available as part of wider charity insurance or standalone
- Helps safeguard charity funds and donor confidence
- Optional legal expenses cover for recovery actions
- Suitable for charities, clubs and community groups
What is fidelity insurance?
Our specialist fidelity insurance can protect your charity, club or community group against fraud, theft or dishonesty by volunteers or employees. This could include employees, volunteers, trustees, or committee members who have access to money, accounts, or financial systems.
This type of cover is particularly relevant for charities, community groups and not for profit organisations, where individuals often share financial responsibilities. Fidelity insurance is usually purchased as part of a broader charity insurance policy and is designed to protect the organisation itself, rather than the individual responsible for the wrongdoing.
Without fidelity insurance, any loss caused by fraud or theft would need to be taken on by the organisation, potentially affecting its ability to operate or deliver services.
Cover starting at
£3 a month
Why do I need fidelity insurance?
Fidelity insurance helps protect your organisation’s funds, including donations, grants, and membership income, if they are misused by someone in a position of trust. Common examples include fabricating invoices, false expense claims, petty cash theft, and stealing collection tins. These often occur in small amounts initially and build up over time, resulting in a significant hole in your organisation's finances.
In some cases, funders or governing bodies may require evidence of fidelity cover where organisations handle significant sums of money. Having this insurance in place helps reassure trustees and supporters that appropriate financial safeguards exist.
Example policy documents
If you have an existing policy with us, please sign in to view your policy documents.
Below you will find examples of the documents provided.
Tailor your fidelity insurance with these covers
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Public liability insurance
Public liability insurance covers the cost of defending your business (including damages awarded against you if unsuccessful) if someone is injured, or their property damaged, which arises from you going about your business or supplying products. The legal fees alone could cost your business thousands of pounds. If you regularly visit client premises as part of your consulting activities, you may need this cover. Limits range from £1m to £5m.
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Professional indemnity insurance
Professional indemnity insurance covers the cost of defending your business against allegations of professional negligence (such as giving your client incorrect or wrongful advice) and any compensation or damages subsequently awarded against you. This is essential insurance if you provide advice, designs or services to your client. Cover is available with limits ranging from £50,000 to £5m.
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Employers' liability insurance
Employer’s liability insurance is a legal requirement if your business has employees. It covers your business against claims for injury or illness suffered by employees arising from their employment. If you employ staff, even on a part time basis, you almost certainly need this cover. Cover for £10m.
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Office insurance
Office insurance covers your office buildings, office contents and computer equipment against accidental damage (including theft) whilst on your business premises. You can also choose to cover your business equipment (such as laptops and mobile phones) on a worldwide basis, and insure your business against loss of income and/or additional trading expenses following events such as damage to your property.
How it works
Choose the cover you require
Get a quote you need in minutes
Buy online or contact one of our advisors
How much does fidelity insurance cost?
The cost of fidelity insurance depends on several factors, including the size of your organisation, the amount of money handled, the number of people with access to funds, and the level of protection required. At Markel Direct, securing fidelity insurance starts from £6 per month*.
*Price based on a community group requiring £50,000 of fidelity insurance.
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Frequently asked questions
These frequently asked questions are designed to help you and include questions relating to policy cover, pricing and ‘technical’ terms.
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Do I need fidelity insurance?
Whilst it may be unpleasant to consider, individuals in positions of authority at community organisations can abuse their position for the own personal gain if inadequate processes are in place. The Charity Commission has even provided guidance on the topic of charity fraud.
Fidelity insurance can pay losses you incur as a result of the dishonesty or fraudulent acts of employees or volunteers - including theft, fraud and dishonesty.
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What kind of claims does fidelity insurance cover against?
Fidelity insurance claims can be wide-ranging, but some examples are given below:
Fabricated invoices
The treasurer of your organisation is found to have been fabricated invoices from a existing supplier, but changing the bank details on the document to their own personal account. Fidelity insurance pays for the losses your organisation has incurred from this act.False expense claims
An employee at your organisation is found to have submitted false expense claims for travel, meals and materials for fundraising events. Fidelity insurance pays for the losses your organisation has incurred from this act.Theft of collection tins
A voluntee at your organisation is found to have stolen collection tins totalling thousands of pounds in contributions - however they have already spent the money, so it cannot be recovered. Fidelity insurance pays for the losses your organisation has incurred from this act. -
Why should I insure with Markel?
Established over 25 years ago, we've gained an expert understanding of the risks facing small charities and community groups, and our policies are specially designed to protect you.
We actively support the third sector. Since 2008, we have donated more than £150,000 to our supported charity, Carers Trust, and have supported numerous charity awards including the Third Sector Excellence Awards and Britain's Best Volunteer in partnership with Small Charities Coalition.
We are a division of Markel International, a Lloyd’s and London market insurer that wrote gross premium totals of $2.4bn in 2023. Still not sure? Call us on 0800 640 6604 - one of our insurance experts will be more than happy to answer any questions you have and talk you through the insurance we offer so you can choose the right cover for your charity or group. Alternatively, get a quote now and call us later if anything needs clarifying.
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We don't have a regular meeting place - can you insure us?
Yes. We cover hundreds of small charities, community groups and clubs that don't have a regular meeting place and instead rotate between different venues, such as members' homes, village halls and community centres.
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How are Markel Direct regulated?
Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.
We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023
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