All voluntary and community groups need to give careful consideration to developing risk management plans, according to the Association of British Insurers (ABI).
It warns that groups that overlook risk assessment face a “potentially crippling bill for damages” in the event of an accident.
The ABI suggests that a good risk management plan involves: Assessing potential risks; taking action to minimize risks; giving an individual responsibility for health in safety; keeping risks under review and seeking help and advice as required.
In particular events involving the public, such as a firework display, should be carefully monitored.
The ABI has produced a new free guide for voluntary and community groups outlining the steps that should be taken as well as indicating appropriate insurance.
Nick Starling, the ABI’s director of general insurance, said:" Risk is a fact of life we all have to face. In the voluntary and community sector, managing risk is especially important because of the wide range of activities and often limited resources to deal with the financial implications if things go wrong.
“Effective risk management should be straightforward and common sense, being an integral part of planning for any event.”
He added: “Following our guidance will not only help all groups develop, but will help them in obtaining competitively - priced liability insurance.”
Shirley Scott, chief executive of the Charity Finance Directors’ Group commented: “If risk management will help contain insurance premiums it must be worth the effort." To read more about insurance, click here.
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