What is Trustee Indemnity Insurance?
This cover is designed for Directors or Trustees of a wide range of organisations such as churches and charities. It’s designed for those working in organisations of all sizes, including non-registered charities. Its purpose is to offer these individuals financial protection arising from unintentional wrongful acts should a liability claim be made against them personally. Deliberate, reckless and criminal acts would not be covered. Without this cover in place, Trustees could otherwise find their own assets at risk.
Who can get Trustee Indemnity Insurance?
Primarily, this insurance is suitable for Trustees of organisations but extends to other senior roles such as governors, board members, directors or members of the management committee. For churches and charities, this cover can benefit anyone who manages the organisation’s administration.
Why do I need Trustee Indemnity Insurance?
Everyone can make mistakes but, in some roles, these can have bigger repercussions than others. We take a look at some of the scenarios Trustee Indemnity Insurance can protect you against below:
- Accidents and injuries within or as a result of your organisation
- Negligence and defamation
- Maladministration of funds
- Breach of duty, trust, and authority
- Damage and claimants’ costs
- Slander and libel
- Employment tribunals and disputes
- Alleged trespass
- Charity commission investigating Trustees
What does Trustee Indemnity Insurance cover me for?
With this policy in place, you will be covered for the legal costs associated with the Indemnity claim, including fines and compensation. Without this protection in place, you may need to cover these costs from your personal finances, including any investigation and defence fees.
Does Trustee Indemnity Insurance cover me for personal injury?
The purpose of this cover is to protect you in the case of a liability claim but if you need personal injury cover as part of an existing policy just get in touch with the team at Edwards Insurance Brokers to discuss your options.
Can you provide some example of claims made for this cover?
Please find below some examples of claims that could be made under Trustee Indemnity Insurance:
- Trustee Insurance Claim for alleged Trespass
When construction carried out by a charity allegedly infringed on neighbouring land, the owner of the land raised a court dispute. While the charity had documents from the previous owner showing that he had passed the land over to them, the claimant revealed that the land never legally belonged to the previous owner. The Trustees who initiated the construction was deemed responsible for damages and for restoring the land to its former condition.
- Trustee Insurance Claim for alleged Discrimination
An interviewee for a position at the charity alleges that she was unfairly discriminated against due to her gender and the fact she was pregnant which meant the position was given to someone less suitable.
- Claim for legal fees to defend a Charity Commission Investigation
When trustees of a charity in liquidation allegedly mishandled the winding up and distribution of remaining assets, creditors claimed that this resulted in the charity’s inability to pay all of its creditors. Even though the charity was Limited by Guarantee, and the liabilities of the Trustees and Directors were negligible, they were held accountable.