Trustee Indemnity Insurance

We recommend a charity has trustee insurance in place to protect itself from liabilities resulting from a breach of duties by a trustee or senior management.  It is also a good way to support trustees as individuals, by covering them from personally paying legal claims made against them.

Trustees Indemnity Insurance can protect both the charity and also its trustees.  

It provides protection for a charity against corporate liabilities arising from claims due to a breach of duties by a trustee or senior management. It can also cover the personal liability of trustees who, having acted responsibly and honestly, find themselves being held to account for their charity’s losses.

In most cases their personal liabilities will be covered under their charity’s Trustees Indemnity policy, so they will not need their own policy.

However we suggest that all trustees should check their charity has a Trustees Indemnity policy and to what extent they are covered as individuals.

Usually any person elected, co-opted or appointed to act as a trustee to a charity or members of an Executive Committee would be covered a Trustees Indemnity policy.

No. Criminal actions would not be covered under a Trustees Indemnity policy.  Nor would actions which a trustee knew (or should reasonably have known) could result in a breach of trust. Regardless of whether a breach of trust might occur, reckless acts would also not be covered.

Largely, the cover is the same however Directors and Officers Insurance is more commonly provide for businesses, whereas Trustee Indemnity Insurance is typically for charities and Not-for-Profit organisations regardless of their legal structure.  The important thing to check is the definition of the Insured Persons in the policy wording.

We recommend a Community Interest Company or Social Enterprise has D&O insurance in place to protect itself from liabilities resulting from a breach of duties by a directors or senior management.  It is also a good way to support them as individuals, by covering them from personally pay legal claims made against them.

Different levels of indemnity are available and typically the minimum level is £100k. This limit applies “in the aggregate” and is the total amount payable during one period of insurance.

Yes. As the organisation grows in terms of income, staffing or volunteers, your Trustee Indemnity or D&O insurance policy should evolve at the same time to ensure that you are always adequately protected.

Directors & Officers Insurance can protect both the organisation and also its directors, managers and officers. These members ultimately carry responsibility for the organisation. 

It provides protection for an organisation against corporate liabilities arising from claims due for a wrongful act. It will also cover their personal liability, if they have acted responsibly and honestly, find themselves being held to account for their organisation’s losses.

In most cases their personal liabilities will be covered under their organisation’s D&O insurance policy, so they will not need their own policy.

However we recommend that directors, officers and managers check their organisation has a D&O policy and to what extent they are covered as individuals.

Usually any person elected, co-opted or appointed to act as a director, officer or senior manager to an organisation or members of an Executive Committee would be covered a D&O insurance policy.

No. Criminal acts are generally not covered under a D&O policy.  Nor would actions which they knew (or that they should reasonably have known) could result in a breach of trust. Regardless of whether a breach of trust might occur, reckless acts would also not be covered.

D&O is an abbreviation of Directors and Officers.