Charity Trustee Indemnity Insurance
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What is trustee insurance?
Often referred to as trustee liability insurance or trustee indemnity insurance, the cover is designed to protect trustees against personal financial loss arising from their duties and responsibilities in managing a trust or charitable organisation. This type of insurance will cover legal costs and potential personal liability that trustees might face if there is a legal action for breach of their duties, maladministration, or for mismanagement of the trust’s assets.
Charities, not-for-profit organisations, or trusts created with a specific objective, will require financial protection for the individuals that take on the responsibilies and personal liabilities arising from their decision-making and management roles obligations of being a trustee. For pension trustees and pension schemes, please refer to pension trustee liability insurance.
We work with a wide range of charity insurance providers, who can provide trustee coverage on a combined charity package that provides protection for a wide range of liabilities and property damage. Further information can be found at charity insurance
What is trustee indemnity insurance?
Individuals that accept roles as trustees can be held personally liable while acting on behalf of your organisation. Trustee indemnity insurance, otherwise known as trustee liability insurance, offers a cost-effective mechanism to protect those individuals should an allegation of wrongdoing occur. The cover which is similar to directors and officers insurance and provides financial protection to individuals against civil, criminal and regulatory proceedings, which may arise while acting in their trustee capacity on behalf of the organisation, trust or charity.
Key aspects of trustee indemnity insurance:
Trustee indemnity insurance will cover the legal costs of the trustees for alleged errors, omissions, or breaches of duty, whilst managing the charity or trust. This can include financial, legal, and other professional decisions, whether they're outsourced to professionals or not. Trustee indemnity insurance protects individual trustees from personal financial losses. By having trustee indemnity insurance, individuals can perform their roles with greater confidence, knowing they have protection against potential legal liabilities.
Why trustee indemnity insurance is important?
Trustees acting on behalf of your non-profit or charity are exposed to numerous obligations and can become the target of legal proceedings during the course of managing a charitable organisation. The law generally seeks to protect individuals where they have acted in good faith and complied with their duties. However, every organisation should consider trustee indemnity insurance to offer a legal defence against allegations and protect their personal assets.
Legal defence
Damages awarded
Expert guidance
Compare trustee indemnity insurance quotes starting from £198 annually or £16.50 monthly
Talk to an insurance expert about your specific needsWhat can a combined charity insurance policy cover?
Trustee indemnity
Provides individuals financial protection from civil litigation and regulatory investigations, while acting in their capacity on behalf of the organisation. The insurance will protect against legal costs in defending allegations and damages.
Entity insurance
Provides the organisation financial protection from civil litigation and regulatory investigations. (i.e breach of contract, copyright infringement and corporate manslaughter). Organisation insurance can only be offered when purchased with trustee indemnity insurance.
Employment practices
Also known as EPL Insurance, provides the organisation and their trustees, directors, officers, employees, protection from claims arising from a range of employment disputes (i.e. wrongful dismissal, harassment and discrimination).
Professional indemnity
Otherwise known as PI Insurance, protects against negligent acts, errors or omissions resulting from civil litigation in the provision of advisory, counselling, consultation or other services.
Fidelity insurance
Provides the organisation financial protection for the theft of property, money or securities from employee dishonesty or fraud. The standard offering is typically limited to Employee Cover, however some insurers may provide additional cover.
How do insurers calculate your trustee indemnity insurance cost?
Quotes can start from £198 annually or £16.50 monthly. Your activities and size are important, measured by turnover, total assets and employee numbers, will have an impact on how your trustee indemnity insurance premium is calculated.
A key consideration for insurers is your financial stability and operational history. If you maintain a strong revenue and profitability with little debt, you are likely to obtain more favourable terms for your trustees.
Talk to one of our insurance experts about your trustee's insurance needs and we can compare quotes from the market to identify the cover you need for an affordable premium.