SME

Compared to a warehouse, a construction site, or a factory, an office might not feel like a particularly risky work environment. But accidents can still happen. And if they do, your business could face some costly claims.

Common Risks For Offices

It is important to take the time to understand all of the possible risks in your office that could lead to an accident or other incident. Once you understand these risks, you will know what actions you need to take to manage and mitigate them.

• Slips, Trips, and Falls – Employees could trip over bags, files, wires, and other items that might clutter or obstruct walkways. A leak or spillage in the kitchen or breakroom could also lead to slips or falls.
• Musculoskeletal Injuries – If an employee lifts a heavy item without following the correct procedures, it could lead to serious long-term back injuries. Years of bad posture could also result in chronic issues in later life.
• Damage to Property – If an employee spills a cup of coffee at their desk, it could result in significant damages to your company’s property and equipment.
• Fire, Flood, and Theft – Finally, offices must contend with the same risks that exist for any business in any sector. Fires may be a particular risk for offices, as the prevalence of flammable materials, including paper and soft furnishings, could mean that any fire that breaks out will rapidly spread.

How to Perform a Risk Assessment For Your Office

There are four essential steps to an office risk assessment:

1. Identify every risk that could lead to accidents or injuries. As well as immediate risks, such as obstructions that could lead to trips or falls, also consider long-term risks, such as back problems arising from poor lifting techniques.
2. Determine the likelihood and severity of every risk you identify. Also determine who each risk is most likely to affect. In an office environment, where everyone works similar jobs in similar conditions, it may be the case that every member of staff is equally susceptible to any risk you identify.
3. Outline the steps you can take to manage, mitigate, or eliminate each risk you identify. Again, it pays to think of long-term risks as well as immediate risks. For example, what can you do today to prevent the onset of RSI in your employees’ later lives?
4. Establish who is responsible for carrying out every risk management procedure you identify. For example, every employee might take responsibility for keeping the area immediately surrounding their desk free from clutter, to reduce the possibility of trips and other incidents.

Read our full guide to risk assessments for businesses.

Health and Safety Starts With Staff Training

You should routinely train your staff to understand the risks associated with the office environment, and the part they can play in managing these risks.

Along with managing everyday risks, your staff training should cover:

• Safe lifting techniques – To avoid the musculoskeletal injuries that could arise from lifting a heavy object.
• Fire safety procedures – What your staff should, and should not do, in the event of a fire. Read our full guide to fire safety procedures for businesses.
• Cybersecurity – Your employees should also understand the role they can play in protecting your business from cybercrime. Read our essential introduction to cybersecurity for businesses.

All new employees should go through this training as part of their induction, and you should run refresher training sessions at least once a year.

Health and Safety Checklist For The Office

Beyond staff training, here are the key elements of health and safety that you should address in your office:

The workplace environment

• Is there a cleaning rota, and are you sticking to it?
• Are staff responsible for keeping their own work areas clean?
• Are the walkways free from clutter and other trip hazards?
• Also pay attention to the light levels, the noise levels, and the air quality in the office.

Fire safety

• Are you keeping on top of routine safety inspections for the electrical equipment in your office?
• Are your fire extinguishers in code?
• Are your alarms and sprinkler systems working?
• Make sure your fire escape routes are clearly marked, and free from all obstructions.

Accident reporting

In the event of an accident, you should:

• Have a process for reporting what took place
• Identify possible root causes of the incident.
• Identify some possible actions you could take to prevent similar incidents from occurring in future.

Get The Right Cover For Your Office

You have a legal duty to get employer’s liability insurance. This will cover your employees for any accidents that might take place in the workplace.

But remember that anything that happens to your employees could also happen to visiting clients and customers, to contractors, to delivery drivers, and to other members of the public who may spend time on your premises.

You employer’s liability insurance would not cover any incidents involving non-employees. Nor would it cover damage to property, or other losses associated with fire, flood, theft, or cybercrime.

This is why you need specialist, comprehensive insurance for your office. James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. We can help you get the dedicated cover you need for your office, at the best price.

Learn more about our specialist office insurance services, or for more information call us on 0330 024 0755 or email enterprisenb@jameshallam.co.uk

There are currently over 4,300 coworking spaces in the UK, with more opening each year.

Coworking spaces provide an affordable means for SMEs and startups to launch and scale, while also providing unique networking opportunities for freelancers, consultants, and other independent professionals.

But this new way of working creates new risks. If you own or manage a coworking space, in this post we will outline what insurance you will need to cover your coworking space, and the people that use it, against all risks.

Add Insurance Requirement To Your Membership Agreements

You should specify that anyone who joins your coworking space, whether they are an individual or an organisation, has adequate insurance to cover their own risks. This should be a requirement for all contracts, even if they only last for a few weeks.

Members’ insurance should cover:

• Their own property. e. Any stock, equipment, devices, or other items they bring to the coworking space.
• Their own liability. For example, any business that uses your coworking space should be covered for any accidents or incidents involving their own employees, or any clients they bring onto the premises.

This means that there will be less uncertainty surrounding who is liable for certain claims. But as well as requiring your members to take care of their own cover needs, you will need your own insurance to cover the areas of your operation for which you are personally liable.

Insurance Cover Coworking Spaces Need

In addition to requiring your members to hold their own insurance, as a coworking space, you’ll also need:

• Employers liability insurance
• Public liability insurance
• Buildings insurance
• Contents insurance
• Business interruption insurance
• Cyber Insurance

We’ll cover each of these in more detail below.

Employer’s Liability Insurance

If you employ any staff to manage your coworking space, then you have a legal duty to get employer’s liability insurance. This will cover your employees for any accidents or injuries they may experience while working for you.

This cover could extend to:

• Cleaning staff
• Caretakers and maintenance staff
• Onsite tech support
• Receptionists
• Catering staff

Public Liability Insurance

Your members should get liability insurance to cover their employees, and any other individuals they bring to your coworking space. But you should still get your own public liability insurance to cover any other members of the public who may visit your premises.

This could include:

• Contractors
• Delivery drivers
• Prospective clients, who visit your coworking space to see if it is right for them

Public liability insurance will cover these individuals for any accidents or injuries they experience while spending time at your coworking space. This will also include cover for their personal property.

Buildings Insurance

This will cover the structure of your coworking space, including any interior fixtures and fittings such as doors, staircases, elevators, and so on. It may also cover certain exterior features, such as car parks, gardens, and outdoor structures.

You will likely be required to get buildings cover for your coworking space as a condition of your rental or mortgage agreement.

Contents Insurance

As we mentioned above, you should specify that anyone who uses your coworking space takes responsibility for their own property while onsite. But you should still get your own contents insurance to cover any equipment or furniture you provide.

This might include:

• Any equipment used by your onsite staff.
• Any stock you store onsite, such as stationery.
• Furniture, including office furniture you provide for your working spaces, and any chairs, tables, or other items you provide in your communal spaces.

Business Interruption Insurance

If a fire, a flood, a break-in, or another incident temporarily prevents you from operating your coworking space, business interruption insurance can cover your overheads for as long as it takes for you to recover.

For coworking spaces, a business interruption insurance policy may include cover for lost income. You may have to refund your members for any time they have paid for, but which they were not able to use. And of course, you will not be able to gather any income from members while your space is closed.

Cyber Insurance

Finally, all businesses are vulnerable to cybercrime, and coworking spaces are no exception.

You might require your members to cover their own liabilities for data loss or cyberattacks. But you should also get your own cover in place, just in case cybercriminals ever target your systems. In this case, your cyber insurance can cover the costs of your response to the attack, along with any legal fees or compensation payments that may arise as a result of the breach.

Read our full guide to cyber insurance for businesses.

Get Tailored Insurance For Your Coworking Space

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you access the specialist insurance you need for your coworking space at the best price.

Get a free quote today. If you would prefer to speak to someone call us on 0330 024 0755 or email enterprisenb@jameshallam.co.uk

We recently published a comprehensive warehouse health and safety policy checklist. In this post we will take a closer look at fire safety risk assessments for warehouses. This is a guide for warehouse owners and managers to help you ensure you are doing all you can to protect your staff, your stock, and your premises from the risk of fire.

Why is Fire a Serious Risk For Warehouses?

Fire is a serious risk for any business. But warehouses especially are particularly vulnerable to fire.

Warehouses are filled from floor to ceiling with large quantities of stock. Even if this stock is not itself flammable, then the components use to store the stock might well be: Wood, cardboard, packing materials, and so on.

So, if a fire breaks out in a warehouse, the sheer volume of combustible materials mean that the fire could rapidly spread before anyone has a chance to contain it.

What To Include in Your Warehouse Fire Safety Risk Assessment

There should be five steps to your warehouse fire risk assessment:

1. Identify the possible fire hazards
2. Identify who is at risk
3. Determine how you can manage, mitigate, or eliminate these risks
4. Record the steps you take to address the risks
5. Periodically review your assessment

Step 1 – Identify The Possible Fire Hazards in Your Warehouse

You need to identify all sources of:

• Ignition – This could include naked flames, such as cigarettes, matches, and lighters; vehicle exhausts; faulty or misused electrical equipment; heat sources such as gas, electric, and microwaves; friction generated by mechanical processes; and sparks from bonfires, welding apparatus, and other processes. Also check any equipment for hot surfaces and make sure their ventilation ports are not obstructed.
• Fuel – As well as your stock, identify all flammable liquids and chemicals, such as cleaning products, paints, varnishes, and spirits; flammable gases such as aerosols and LPG cannisters; and materials such as plastics, rubber, paper, textiles, soft furnishings, insultation, and timber.
• Oxygen – Fire needs a source of oxygen to burn. If a fire breaks out in your warehouse, the air itself will provide this oxygen. But there may be additional sources of oxygen which could help the fire to spread. For example, certain chemicals might act as oxidising agents, and welding and other processes make use of oxygen cylinders.

Step 2 – Identify Who Is At Risk

If a fire were to break out in your warehouse, who would be at risk?

All employees would be at risk, of course. But you should pay particular attention to:

• Anyone who works alone, such as cleaners or security staff, and employees who work in isolated areas.
• Employees who are less familiar with your premises and processes, such as contractors, customers, delivery drivers, and seasonal workers.
• Employees with mobility issues, or language issues.

These are employees who may need extra support in effectively responding to a fire breakout. You may need to consult such employees in order to fully understand their individual needs, and how you could accommodate them.

Step 3 – Determine How You Can Manage, Mitigate, or Eliminate These Risks

Once you understand the possible sources of fire, and once you have identified who is at risk, you need to outline how you are going to manage these risks.

The specific steps you take will depend on the risks you have identified, but it might involve the following:

Staff training

Ensure that everybody understands the fire risks in your warehouse, and the role they can play in managing these risks. Also ensure that everyone understands the proper evacuation procedure in the event of an outbreak, including those you identified in step 2, who may be particularly at risk.

Addressing sources of ignition

This could include setting designated areas for smoking, for burning waste, for welding, and for other activities and processes that could create sparks or naked flames. You could also ensure that all electrical equipment is regularly inspected, and properly installed, used, and maintained.

Addressing sources of fuel

You might have to rethink how you store certain items. For example, you should not store combustible solids, liquids, and gases in the same space. You should also ensure that there is adequate spacing between any stacks of stored stock, and you should review your security systems to reduce the risk of arson.

Address sources of oxygen

Set some best practice guidelines. For example, any doors, windows, or other openings that are not required for ventilation should be kept shut as much as possible. You should also avoid storing any oxidising agents near any sources of heat, or flammable materials.

Review your fire safety equipment and procedures

Are your fire extinguishers all in code, and suitable for fighting the sort of fires that could break out? Are you fire alarms, emergency lights, and sprinkler systems in good working order? Do all staff, including any temps or seasonal workers, understand the procedures to follow should a fire break out? Are your fire exits clearly marked, and are all escape routes clear of obstructions?

Step 4 – Record The Steps You Take to Address The Risks

Keep a record of any risks you identify, including those members of staff who may be particularly at risk, along with any action you take to address these risks.

Also keep a record of any additional staff training requirements you identify. And if you meet with any staff members to discuss their individual needs, keep a record of this discussion, and of the agreed actions.

Keeping such records will prove invaluable should any enforcing authority ever call upon you to evidence your fire risk management procedures. Your records will also act as a benchmark, which you can refer to when reviewing your fire risk management procedures.

Step 5 – Periodically Review Your Risk Assessment

You should periodically review your fire risk assessment in order to ensure that you are managing all existing risks while effectively responding to any new or emerging risks.

At minimum, you should review your fire risk assessment once a year. But you should also review your fire safety policies and procedures whenever you make any significant changes to your warehouse operations, including:

• Substantial changes to the working patterns, including the acquisition of new equipment
• Alterations to the warehouse premises, including any changes to the furniture, fixtures, and fittings.
• Major staff overhauls, such as the recruitment of seasonal staff or contractors.

Get The Right Cover For Your Warehouse

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. We can help you get the dedicated cover you need for your warehouse. We can also show you how to evidence your fire risk management procedures to your insurer, which could help you make a saving on the cost of cover.

Learn more about our specialist office insurance services, or to speak to someone call us on 0330 024 0755  or email enterprisenb@jameshallam.co.uk

Every year, small businesses must contend with a wealth of new and emerging threats, while also safeguarding their operations against the sort of risks that never go away. In this post we will look at some of the most common small business insurance claims that insurers expect to deal with in 2026.

What Claims Are Expected This Year?

In the current climate, insurers are expecting to be dealing with claims relating to:

• Cyberthreats using AI
• AI risks relating to data and intellectual property
• Property damage from extreme weather
• Property damage and business interruption as a result of deferred maintenance
• Liability claims

We’ll explore each of these in more detail below, and what you can do to help protect you and your business.

AI Brings Both Internal and External Threats

Cyber threats from AI tools

There is no question that your business needs cyber insurance. One study found that around 96% of all cyberattacks target SMEs. And as artificial intelligence (AI) tools get more powerful and accessible, it has never been easier for cybercriminals to target your business for phishing, ransomware, and other cyberattacks.

Data security, IP and reputational risk from AI use

But AI brings internal threats, too. Many businesses, eager to join the “AI revolution”, have started using off-the-shelf tools to create content, draft proposals, and process their data. This may expose some SMEs to certain unexpected risks.

Without proper governance, through using an AI tool a business may inadvertently:

• Breach intellectual property laws
• Leak private or confidential data
• Provide clients with bad advice or poor services

All of this could lead to costly claims, financial losses, and significant reputational damage.

While AI can help businesses move faster while saving time on admin, you must never take these tools for granted. Never lose sight of the importance of privacy and data confidentiality, and never release or share any AI-created content without first performing a thorough human review process.

And if a client ever makes a claim against you, make sure you have adequate professional liability insurance to cover any legal fees and other expenses that may arise.

Property Damage From Extreme Weather

Extreme weather events, such as storms, high winds, and flash floods, appear to be on the increase. Whether that is the case, the fact remains that property damage from adverse weather is an ongoing risk for any business that operates out of a brick and mortar premises. Regardless of whether that is a retail shop, an office, a bar, a restaurant, or a warehouse.

From backing up your business data to installing flood defences and sprinkler systems, there are many things you can do to help mitigate the damages from any possible incident. Yet it may prove impossible to prevent certain incidents, which is why your small business insurance should give you all the cover you need to make a full recovery.

Business buildings insurance can help you cover the costs of repairs following an incident. But you should also invest in business interruption insurance, which can cover your overheads during an extended period of downtime. And as recovery from an adverse event can take much longer than expected, you should aim to make your business interruption insurance liability period as long as possible.

Read our full guide to how small business insurance can provide vital peace of mind.

Deferred Maintenance: A Disaster Waiting To Happen?

In recent years, high inflation rates and ongoing supply chain issues have resulted in higher labour and material costs, along with longer lead times, for all maintenance, repair, and renovation projects. As a result, many SMEs may have deferred some essential maintenance tasks.

While deferring maintenance can save money in the short-term, in the long-term it could expose your business to a greater risk of fire, flood, subsidence, and downtime as a result of broken or faulty tools or equipment.

In the coming years, insurers may face more claims for repairs or business interruption as all of this deferred maintenance finally catches up with SMEs.

While it is understandable that SMEs will look to save money during uncertain economic periods, it pays to think in the long-term. Switch to a preventative maintenance schedule. The savings you make on deferring maintenance will pale in comparison to the eventual cost of repairs or replacements, or the higher insurance premiums that could follow claims.

Liability Claims – A Perennial Risk For All SMEs

Finally, all SMEs should protect themselves against potential liability claims. This is when an individual or an organisation makes a claim against your business on the grounds of negligence, professional misconduct, or similar.

Here are some situations that could result in a liability claim for your SME:

• An employee injures themselves on the job, or contracts an illness through their work.
• A member of the public, such as a customer, a contractor, or a delivery driver, trips or falls while on your premises.
• A client is dissatisfied with your work, and claims you have breached your contract or acted dishonestly.

In each of these cases, liability insurance can cover any compensation payments that may be due, along with any legal fees that may arise.

Public liability insurance can cover you for any claims arising from incidents involving members of the public, while professional liability insurance can cover you for any claims arising from clients relating to your work or conduct.

You also have a legal requirement to get employer’s liability insurance, which will cover you for any claims arising from your employees.

Talk To James Hallam About Your Small Business Insurance Needs

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who are committed to getting you the cover you need at a price you can afford, no matter what challenges the next few years may bring.

Get in touch for a free quote today.

The specific licences you need to run a newsagent will depend on whether or not you choose to sell certain regulated products, such as alcohol and tobacco.

In this post we will list the various licences you may need as a newsagent.

When Does A Newsagent Need a Licence?

Most, if not all, newsagents will need to register for licences to undertake a number of activities and sell different types of products. You will need licences if you wish to:

• Sell food – registering will give you a licence to store, sell, or prepare food on your premises, as long as you meet all relevant food safety laws.
• Sell alcohol
• Sell tobacco products
• Sell fireworks
• Sell lottery tickets
• Play music
• Employ young people to deliver newspapers

We’ll explore some of these licences in more detail below.

What Licence Does a Newsagent Need to Sell Alcohol?

In the UK, there are two types of alcohol licence: Premises licences, and personal licences. If you want to sell alcohol in your newsagent, you will need both types of licence.

• A premises licence will give you the legal right to sell alcohol from a specific location – in this case, your newsagent.
• A personal allowance will give you the legal right to sell alcohol, through acting as your newsagent’s Designated Premises Supervisor (DPS).

If you sell alcohol without the relevant licences, you will face a personal fine of up to £1,000. You may also get a criminal conviction, which could lead to up to six months’ imprisonment.

As part of your licence to sell alcohol, you will be required to implement and enforce age verification policies. Once again, you will face fines and legal sanctions if you fail to do so.

What Licence Does a Newsagent Need to Sell Tobacco?

If you want to sell cigarettes and other tobacco products in your newsagent, you will need an economic operator ID, along with a separate facility ID for your newsagent. If you run more than one newsagent, you will need a separate facility ID for each store.

The Government intends to introduce a new vape licensing scheme by the end of 2026. Under this plan, Trading Standards could issue instant fines of up to £2,500 for any stores caught storing or selling vapes without an appropriate licence.

The vape licensing laws are likely to be similar to the alcohol licensing laws, meaning you will need both a personal and a premises licence if you want to sell vapes at your newsagent.

What Licence Does a Newsagent Need to Sell Fireworks?

You must notify your local fire authority, along with the relevant trading standards departments, if you wish to sell fireworks in your newsagent.

However, you only need a licence if you intend to sell fireworks all year round. You do not need a licence if you are selling fireworks during the Bonfire Night, New Year, Chinese New Year, or Diwali periods – though you will need a licence to store fireworks during these times.

Learn more about the UK’s firework licensing laws.

What Licence Does a Newsagent Need to Sell Lottery Tickets?

If you want to sell lottery tickets in your newsagent, along with other gambling products such as scratchcards, you will need a lottery retail licence from the Gambling Commission.

You can learn more about the current lottery licensing laws.

Specialist Insurance For Newsagents

Selling alcohol, tobacco, vapes, and fireworks from your newsagents may expose your business to additional risks. Thieves may be more likely to target your store for theft, and some products carry a strong fire risk.

You need to make sure your business insurance will cover you for the risks associated with storing and selling these regulated items.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. We can help you ensure that your specialist newsagent insurance meets all of your cover needs at the right price.

Find out how we can help you today.

Tool insurance is essential cover for anyone who works in construction, or any related trades. Or indeed anyone who owns and uses tools as part of their work.

In this post we will outline what tool insurance is, and what it covers. We will also give a ballpark figure for the amount you might expect to pay for this cover.

What is Tool Insurance?

Tool insurance is cover for your tools and equipment. This can include handheld tools, including hammers, screwdrivers, and saws; and power tools, including drills, angle grinders, and nail guns. A tool insurance policy can cover your equipment whether you own it, lease it, or use a hire-purchase arrangement.

A policy may be extended to cover any plant machinery you might use as part of your work, such as excavators and bulldozers. Though some insurers may offer dedicated plant and machinery insurance instead.

It’s also possible to include cover for tools as part of a Contractor’s Policy or a Trades & Professions Policy, both of which provide broader cover for the business as a whole.

What Does Tool Insurance Cover?

Most tool insurance policies will provide cover for:

• Damage, theft, or loss (whether this is accidental damage or intentional vandalism or theft)
• Tools in transit
• Toolbox cover (i.e. cover for the equipment you use to store your tools)
• EU cover (for overseas jobs)
• Hired-in plant cover, for any equipment you hire, or buy on hire purchase

In addition, your tools insurance may extend to cover any other equipment you use as part of your job, such as ladders, your smartphone, your laptop, and so on.

What Does Tool Insurance Not Cover?

Usually, tool insurance will not cover ordinary wear and tear, or any deliberate damage caused by employees. Plus, if you need to replace a tool because it becomes faulty, this should be covered by your warranty, as opposed to your tool insurance.

Finally, while your tool insurance may cover tools you occasionally leave out of sight in a van overnight, it may not cover tools you keep in a van indefinitely. The policy may specify that the cover will not extend to any tools you keep in a van for 48 hours or longer.

How Much Is Tool Insurance?

The amount you pay for your insurance will vary from insurer to insurer. Some insurers may charge as little as less than £10 a month for tools insurance. But your premiums may be much higher, depending on your personal circumstances.

The more tools you need to cover, and the more expensive these tools are to begin with, then the more you will have to pay. You may also have to pay a higher premium if you routinely work in urban areas, or other locations with comparatively high crime rates.

How to Keep Your Tools Safe

If you take steps to keep your tools safe, it can help to bring down the cost of your tool insurance:

• Never store tools in a van for any longer than you have to. Try to keep them somewhere extra secure overnight and over weekends.
• Get extra security features for your vans and other vehicles, including alarms, locks, and immobilisers, to keep your tools safer both in transit and in storage.
• Register your tools’ serial numbers online, so that police can attempt to track them, and potentially recover them, following a theft.
• Try not to keep your tools unattended. Someone may steal them when you are not looking, or they may get exposed to hazardous conditions that could lead to damage or loss.

Is Tool Insurance Worth It?

If you work in construction or own high-value tools in your business, then tool insurance is a business necessity.

According to figures from Met Police, nearly 45,000 tools are stolen every year in the UK. Typically, each individual instance of tool theft costs construction businesses between £1,000 and £3,000, which does not include the costs associated with the disruption and delays that could arise from tool theft.

Plus, beyond theft, there is also the chance you could lose or accidentally damage your tools. It is no exaggeration to say that your construction projects simply will not be able to continue without the necessary tools of the trade. Repairs and replacements can be expensive, which is why tools insurance can provide vital financial support for construction businesses of all sizes.

Get The Specialist Construction Cover You Need From James Hallam

At James Hallam, we can help you protect your construction business with specialist risk management and insurance support.

We are an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who are committed to getting you the specialist construction insurance you need at a competitive price, which can include comprehensive tools insurance.

Find out how we can help you today.

UK law outlines a number of legal responsibilities and duties for charity trustees. In this post we will take a closer look at what these duties entail, and explore how specialist trustee insurance can help you stay safe and compliant in your role as a trustee.

What is a Charity Trustee?

A charity trustee is anyone who has overall control of a charity and its operations. Trustees are chiefly responsible for ensuring that the charity is run effectively, and that it stays true to its mission and goals.

As well as dedicated trustees, a charity’s directors, board members, governors, and committee members may also take on trustee roles and responsibilities.

Charity Trustee Eligibility Laws

The UK Government sets the following eligibility criteria for charity trustees:

• You must be at least 16 years old to be a trustee at a charity that is a company, or a charitable incorporated organisation (CIO). To be a trustee at any other kind of charity, you must be at least 18 years old.
• The charity must appoint you following the procedures and restrictions in their governance documents.

What Can Disqualify You From Being a Charity Trustee?

The UK Government also lists some criteria that will disqualify you from acting as a trustee:

• Bankruptcy, or an individual voluntary arrangement (IVA)
• Unspent conviction for certain criminal offences, such as those involving dishonesty or deception.
• Being on the sex offender’s register.

There are additional restrictions concerning any charities that work with children or adults at risk. You can read a full guide to the trustee eligibility laws.

You can apply for a waiver from the Charity Commission if any of these disqualifying criteria apply to you.

Main Duties of Charity Trustees

There are six main duties that charity trustees are expected to carry out:

1. Ensure that the charity is carrying out its purposes, and no other purposes, for the public benefit.
2. Comply with the charity’s governance documents, along with all applicable laws, including preparing and submitting annual returns.
3. Act in the charity’s best interests. This means making adequately informed decisions, avoiding conflicts of interest, and refusing all benefits from the charity unless they are properly authorised, and clearly in the charity’s interests.
4. Manage the charity’s resources responsibly. Among other things, this means ensuring that the charity’s assets are only used to support or carry out its purposes.
5. Act with reasonable care and skill.
6. Ensure the charity is accountable. As well as meeting all statutory accounting and reporting requirements, you should be able to evidence how your charity is run, and how it complies with all relevant legislation.

Specialist Trustee Roles: Chair and Treasurer

Some trustees, such as the chair and the treasurer, take on specialist roles. They are known as officers, and though they do not automatically have any additional legal duties, there should be specific provisions in the charity’s governance documents concerning their responsibilities.

But even if one trustee works as a treasurer, it does not mean that this trustee takes sole responsibility for the charity’s finances. Plus, while a chair of trustees might coordinate meetings, they will not take sole responsibility for anything that happens to the charity.

In short, regardless of whether or not the charity appoints officers, all trustees will always remain jointly responsible for the charity.

Can Charity Trustees Be Personally Liable for Issues?

If a charity trustee fails to comply with these duties and responsibilities, then they may be held personally liable for any financial losses the charity suffers. They may also be held personally liable for any claims made by a third party against the charity.

For example, if a trustee spends a charity’s funds on the wrong purposes, then they may ultimately be required to reimburse the charity personally. Plus, if the charity faces any fines or other penalties as a result of not meeting certain accounting or reporting requirements, then once again, the trustees may be held responsible for these expenses.

Make Sure You Are Covered For All The Risks You Face as a Trustee

Bespoke charity insurance can include cover for trustees who may be held personally liable for claims involving dishonesty or mismanagement.

At James Hallam, we have supplied dedicated insurance and risk management solutions to charities and other third sector organisations since 1982. We are an independent Lloyd’s broker, and charity trustees across the UK rely on us for expert advice and market-leading solutions at a competitive price.

Find out how we can help you manage all of the risks you face as a charity trustee.