Charity shops

Charity shop insurance protection

According to the Charity Retail Association (CRA website, September 2016) there are about 10,500 charity shops in the UK & Ireland, generating annual profits of £300 million and utilising the skills of some 217,000 volunteers.

Charity shops, like all retail establishments, face a number of common risks such as:

  • The health and safety of staff and customers
  • Loss of attraction/custom
  • Costs of waste removal and the increased cost of legislative compliance
  • Increases in rental costs and staff costs
  • The impact of the minimum wage as well as employee fraud and shoplifting.

Charity shops face shortages of donated stock or theft perhaps via bogus collectors, collection costs and loss of rates relief. Volunteer recruitment is difficult and the management of volunteers generally spans an average of 15 part-time volunteers involved in each shop. Then there is the possibility of VAT being applied to donated goods and ongoing pressure to find appropriate premises.

Health & Safety is crucial within charity shop insurance. Guidance and resources are available through the CRA and focus on safe lifting and sorting, as well as stock collection and more general risk assessments and management advice. This has been built up within the sector and as such provides very specific help. We can supplement these resources by working with you on your charity shop insurance strategy.

  • Assessing the strategic dependence or otherwise on retail as an income stream – plus competitor monitoring.
  • Analysing locations against the claims and incidence profile and loss/incident types.
  • Checking what action has been taken to minimise future losses and how this has been advised to insurers - as well as how reserves have been set and challenged.
  • Interviews with key retail representatives at all levels to understand individual and collective risk concerns.
  • Offering advice and guidance on the changing regulatory framework and access to a comprehensive and professionally qualified team of risk management advisors.
  • We can use our wider retail risk knowledge and specialist knowledge for your benefit – helping to spot emerging trends and apply approaches that have worked in the commercial retail sector.

Please note that some of this work may generate additional charges, but we will discuss and agree these with you in advance.

We believe that by taking a broad but detailed review of your charity shop insurance and retail risk and opportunities we can help you reduce risk, maximise funds raised and benefit from lower charity insurance premiums.

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