UK charities face a tough time right now, with rising staff overheads thanks to the minimum wage increases, plus the lower NI thresholds. Charities using “free” properties like shops and offices can face problems with building safety and compliance. Recruiting activists can also lead to long running HR and employment tribunal arguments. There is also a growing future potential risk as charities face legal challenges after relatives contest the terms of Wills too, with all the costs associated with lengthy court battles. Here’s the word;
Charities insurer, WRS Insurance Brokers, has released new claims data revealing the most common insurance risks facing UK charities. The new data highlights continued pressures around property damage and a notable rise in legal disputes.
The claims data review analysed more than 50 charity insurance claims from 2025, using WRS charity client data and insights from its specialist claims team.
Legal Expenses claims were the fastest-growing category in 2025, increasing from 19% of total claims in 2024 to 38% in 2025. These claims most commonly arose from employment disputes, contractor or supplier disagreements, and governance or regulatory matters.
While legal claims typically involve lower individual costs than major property losses, their growing frequency reflects increasing regulatory and operational pressures facing charities.
Property damage also accounted for 38% of total claims, with an average cost of £9,866 per incident. The most common causes were burst pipes and water leaks, representing 10.9% of all claims, followed by theft at 9.1%.
Accidental damage, storm damage and general property damage each accounted for 5.5% of claims, with glass breakage at 1.8%. Despite a drop in storm-related claims from 10% in 2024, property-related losses remained a major driver of overall claims activity.
Employers’ Liability, Public Liability, Professional Indemnity and Business Interruption claims each represented a smaller proportion individually. The data reinforces that everyday property and liability risks remain the most significant exposures facing charities.
Emma Jeffery, Senior Claim Executive at WRS Insurance Brokers, said:
“The 2025 claims data reinforces what we’re seeing across the sector. Property damage remains the costliest area of risk for charities, particularly from water damage, while legal claims are becoming more frequent as organisations face increasing regulatory and employment pressures.
Emma continued: “Simple preventative measures, such as regular building checks, clear governance processes and early access to legal advice, can make a meaningful difference. Understanding where claims most commonly arise allows charities to take practical steps to reduce risk and ensure their insurance arrangements remain fit for purpose.”
In light of the findings, WRS highlights several practical steps charities can take to reduce risk:
Reducing burst pipes and water damage claims
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Insulate exposed pipework, particularly in older or unused buildings
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Drain systems during prolonged closures or colder months
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Carry out regular property inspections and maintenance checks
Preventing theft
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Install and maintain intruder alarms and CCTV
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Ensure doors, windows and outbuildings are securely locked
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Keep high-value items out of sight and maintain accurate asset records
Minimising legal disputes
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Use clear employment contracts and up-to-date HR policies
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Speak to your insurance provider as soon as an incident arises
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Ensure governance procedures and decision-making are well documented
Proactive risk management can significantly reduce both the frequency and cost of claims, helping charities protect their finances and continue delivering their services.
About WRS Insurance Brokers
WRS Insurance Brokers has supported charities and community organisations with specialist insurance for over 40 years. WRS is part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.
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