Charity in insurance shock

A charity that works with children at risk says it may be forced to close because it cannot afford rocketing insurance costs.

The Atlow Mill Centre near Hognaston, Derbyshire, faces an increase of almost £15,000 in its insurance premium.

The centre runs residential courses to help children at risk of exclusion from school to deal with their emotional and behavioural problems.

Jean Bond, who runs the charity, says it will be forced to close and leave vulnerable children at risk if it cannot find a better deal.

'Difficult children'

"Their chances of going down the slippery slope into crime will increase," she said.

"We work on their emotional processes so they can speak about their emotions instead of kicking somebody or walking out of the classroom."

It is not an unusual situation and charities of this nature across the country have this problem

Peter Stadden, British Insurance Brokers' Association

The centre works with about 120 children every year.

"Part of the programme is a five-day residential stay and because they are difficult children and they stay overnight, the insurers don't want to touch them," said Mrs Bond.

Peter Stadden of the British Insurance Brokers' Association says the premiums are going up because of an increase in claims made against charities which work with children.

Mr Stadden said: "It is not an unusual situation and charities of this nature across the country have this problem."

Rely on volunteers

He said professional indemnity insurance was "going through the roof" with increases of 300%- 400% in policy costs.

Mrs Bond said: "We have only three employees and we rely on trust funds and local authorities and contract with schools.

"We have three full-time volunteers working for us because we cannot afford to pay them."