Charity Times speaks to Natalie Bate, Head of Market (Education, Charities and Social Organisations) at Zurich about the ever-evolving insurance market.

What are the main risks charities face today that weren’t as prominent 10 years ago? And how is the insurance market responding?

Zurich recently teamed up with NCVO on The Road Ahead to help charities manage changing risks. Cyber threats are on the rise, so it’s not just about buying insurance anymore – it’s about managing risks proactively. With more charities using digital tools and new technologies like AI, Zurich offers guidance, insights, and webinars to keep them ahead of the curve. Mental wellbeing is now a key part of liability risk discussions which is why Zurich has updated its support services, including counselling, to better meet these needs. Climate change is another growing challenge, especially for vulnerable communities. Zurich provides guidance to help charities strengthen their climate resilience, showing its commitment to sustainability and longterm support for the sector.

Have insurance premiums and coverage terms for charities changed significantly in recent years? If so, what’s driving those changes?

Premiums are driven by the market. They depend on where the cycle is, each customer’s individual risks, and their claims history. In terms of coverage, not much has changed. Core covers like public liability and employers’ liability remain essential. However, as cyber risks grow, more organisations have purchased cyber insurance and worked on building their understanding of these threats to strengthen their resilience for the future.

How have regulatory changes and compliance requirements influenced the types of insurance charities now need to consider?

The Procurement Act sets out the rules and standards for how public sector organisations must buy goods, services, and works. This has changed how charities work with public sector contracts. It’s not just about cost anymore; contracts now consider social value and risk management. Charities need strong insurance like public liability, professional indemnity, and cyber cover to stay competitive.

What common mistakes or oversights do you see charities making when it comes to insurance, and how can they better protect themselves?

Not reviewing your insurance properly could leave your charity vulnerable. Insurance is essential for keeping your organisation safe and resilient. It also encourages innovation. Charities can make better use of their full insurance package. At Zurich, we’re not just here to take on your risks. We can help you understand them and show you how to make the most the resources we offer. Be cautious about cutting costs in the short term without considering the long-term consequences. For instance, increasing your deductible might seem like a saving now, but it could end up costing you more in the future. Making sure that your assets and liabilities are insured at the correct level should be a priority when budgeting for the year ahead.

Looking ahead, what opportunities exist for charities to use insurance more strategically?

Charities should keep their risk register up to date. Make sure it reflects current activities and separates strategic risks from operational ones. Strategic risks affect long-term goals, while operational risks focus on daily tasks. Understanding these risks helps charities choose the right insurance and stay prepared for challenges. Insurance should be used as a tool for resilience and growth and charities should look into how they can use their insurance providers innovatively to facilitate this.

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