Every penny counts for social enterprises – so manage your risk and reduce your premiums

There has been a large rise in the number of UK social enterprises in the past 10 years.

There are now 70,000 social businesses contributing £24 billion to the UK economy, a study by Social Enterprise UK revealed. A quarter of them are less than three years old, the report discovered.

Although they are run like traditional businesses, they don’t simply serve shareholders.

Instead, they are often set up specifically to deal with social problems such as low rates of employment in certain areas, homelessness, to improve environmental issues, or to help people with mental health issues.

So, profits tend to be ploughed back into the business or into social schemes running alongside it.

The Social Enterprise UK report found that social enterprises are growing faster and innovating more than traditional businesses and they lead the way on diversity with 41% of them being led by women, 34% having black, Asian, or ethnic minority directors, and 36% of them having a director with a disability.

In fact, 47% of social enterprises grew turnover in the last year, compared with just 34% of SMEs and 78% of social enterprises pay higher than the Living Wage.

Social enterprises are now an important part of our economy. Examples set up in recent years include

furniture upcycling businesses, cafes, craft enterprises, community centres, and theatres.

Why is getting the right insurance for social enterprises so important?

Every penny counts for social enterprises – so the right insurance cover at the right premium is key.

How can you do that?

Choose a broker with experience of dealing with social enterprises and charities who will understand your needs and talk to you about public liability, cover for premises and equipment, and how you can reduce your risks and cut your premiums.

A broker with a friendly, active risk assessment team is a must for any social enterprise dealing with the public in their premises, making and selling items to the public, producing or serving food or drink, or giving advice in any way.

How can you reduce your premiums?

• Get good CCTV cameras and a strong security system at your premises.
• Ensure staff have the correct training and accreditation for the roles they perform. This is equally important whether they are paid staff or volunteers. Do they need police checks, too?
• Carry out regular fire risk assessments at your site and produce written evidence that you’ve done that.
• Get a good cyber security system for your IT – and back that up with cyber insurance. There is a serious threat from hackers and viruses, and there have been several high-profile instances of ransomware in recent years.
• Give your independent broker all the details needed to get you the best package from the marketplace.

Do you need advice on the right insurance for your social enterprise? Call our expert brokers on 02920 470375.