Trustee Indemnity Insurance For Your Charity

Protect the trustees, directors, governors and committee members of your charity, voluntary organisation or community group with trustee indemnity insurance.

What Is Trustee Indemnity Insurance?

At BHIB Charities Insurance, we understand that trustees play an essential role within your organisation. Trustee Indemnity insurance (also referred to as Management Liability Insurance) is designed to protect past, present and future trustees of charities, voluntary organisations, associations and clubs. Equally, this can include directors, partners, committee members, officers and governors, as well as an option to cover the entity itself.

Any individual operating in these capacities can be held personally responsible for ‘wrongful acts’, for example an inadvertent error, misstatement or breach of duty. They could be held personally liable and face legal proceedings, and their personal assets could be at risk.

Trustee Indemnity insurance can cover costs associated with a legal case or investigation, as well as civil fines and penalties. Having this cover not only provides peace of mind for people in those positions right now, but may help your organisation attract and retain new trustees.

The policies can be extended to include claims brought against the entity and, in addition, you can opt to add Employment Practices Liability, which provides additional legal defence coverage in the event of an employee accusing a senior official of unfair dismissal, or discrimination, for example.

Below is a real-world example that demonstrates why trustee indemnity insurance is so important:

The trustees of a rugby club start working on building new changing room facilities after they receive a firm promise of a grant. Unfortunately, they never receive the grant funds due to issues beyond their control and are therefore unable to pay for the building work that has already begun. The builder then goes on to sue the trustees of the club. Without a trustee indemnity policy in place, the trustees themselves would have to cover the costs of the builders claim.

How we protect your charity

When you are running any type of not for profit organisation it is important to have the correct type of cover in place.

BHIB Charities Insurance policies can include:

  • Public Liability
  • Employers' Liability
  • Contents Insurance

Additional cover includes:

  • Professional Indemnity
  • Trustee's Liability Insurance
  • For further covers available, please see the ‘What We Cover’ section

FAQs

The amount of cover you might require for your trustees will depend on a variety of factors, including the size of your organisation, the nature of your activities, how many trustees you have and so on.

Trustee insurance can provide cover up to £10 million, and the costs vary depending on the level of cover you need. To find out more, get a quote for your charity or request a callback from our team.

Your policy will cover you for the costs of defending and settling claims against your trustees for:

  • Charges in relation to a breach of duty or trust, negligence or defamation
  • Health and safety issues, including corporate manslaughter
  • Employment disputes and tribunals
  • Managing or operating employee benefits schemes and pension funds

To learn more about trustee indemnity insurance, read our guide: Trustee Indemnity insurance – everything you need to know

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