Increasing concern by charities over public liability risks has been documented in a report released this week by sector insurer Ecclesiastical.

The report – supported by the Charity Finance Directors’ Group (CFDG), whose annual risk assessment conference held yesterday was co-sponsored by Ecclesiastical – takes a closer look at the increase in public liability risks and claims brought against charities over the last few years.

September 2011 research by independent agency FWD found that 27 per cent of the charities questioned listed public liability issues as their single biggest area of concern in 2011.

Ecclesiastical’s report states that the volume of public liability settlements recorded by the Compensation Recovery Unit rose by 18 per cent between 2007 and 2011.

“We have certainly noticed an increase in liability claims over the last few years, both in the charity sector and in the other specialist sectors we insure,” said Martyn Turner, charity underwriting manager at Ecclesiastical. “Whether this increase is a result of an increasing claims culture in the country in general or a sign of the turbulent times we live in is difficult to say.”

The report explores possible reasons for the increase, the impact of the proliferation of claims management companies on the number of claims filed and the impact of litigation brought against a charity on their organisation. It also offers risk management advice on how to reduce the chance of such claims being brought against a charity, and provides guidance for charities that are already faced with a claim.