Charity and Trustees Insurance

What is Charity and Trustees Insurance?

Trustees of charities often give advice or offer services in their everyday running of a charity and therefore can open themselves up to personal liability claims, for neglect , errors or omissions, there is no protection against these commercial liabilities unless an insurance policy is in force. Which in the main would cover the charities for the defence of an allegation and should the charity then have been found to be neglectful in their duties, cover the damages costs liabilities up to the chosen level of insurance cover.

The best form of protection against potential liabilities and there are many, would be to arrange an insurance policy, however, there are guidelines that you need to perhaps consider - the Charity Commission for England and Wales has summarized these in their publication 'CC49'.

Cover can be arranged for trustees liability, employment practice insurance, professional liability, legal liability for your charity as part of a package or separately. This can provide cover for the following types of exposures:

• Liability for Directors
• Professional Indemnity Cover
• Use of funds collected (not financial loss of investment themselves)
• Fidelity – dishonest, fraudulent or criminal acts of managers or employees
• Loss of Documents
• Executive covers – liabilities
• Employment practices liabilities i.e. employment disputes including cost for things such as official investigations enquiries, health safety etc
• Indemnification of innocent trustees / directors of the charity

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If you have any questions, please call us on +44 (0) 1323 648000