Answer

The current arrangements for depositor protection cover organisations and not just private individuals, however the organisation must qualify as a "small business" and there are a number of test which must be satisfied. In simple terms your organisation should not have turnover in excess of £6.5M otherwise you are excluded from the scheme.  

The tests are a little complex so I would suggest that organisations concerned about this consult with the Financial Services Compensation Scheme directly- www.fscs.org.uk.

The UK Government has made it fairly clear that they are prepared to go to almost any lengths to prevent a bank or other deposit taker from failing. However if you are concerned then spreading your accounts across a wide range of institutions would mitigate the potential risk. However be aware that the  depositor protection scheme works on a per banking license basis, so be Halifax and Bank of Scotland for example are both HBOS banks and not seperate.

The only assets which are lower risk than cash deposits are Government securities; gilts and certain corporate bonds with very large institutions.