Insurance claims made by charities related to legal expenses have doubled over the last year.

While just under one in five insurance claims were linked to legal issues in 2024, that doubled to just under two in five the following year, according to new claims data by charities insurer WRS Insurance Brokers.

“While legal claims typically involve lower individual costs than major property losses, their growing frequency reflects increasing regulatory and operational pressures facing charities,” it found.

Most claims involve employment disputes, contractor or supplier disagreements, and governance or regulatory matters.

The insurer also found that two in five claims are related to property damage. The average cost per incident is just under £10,000, with the most common causes being burst pipes and water leaks.

“Property damage remains the costliest area of risk for charities, particularly from water damage, while legal claims are becoming more frequent,” said WRS Insurance Brokers senior claim executive Emma Jeffery.

“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.”

The insurer also found that accidental damage, storm damage and general property damage each accounted for around one in 20 claims. A drop in storm related claims was also revealed in its data.

---