Trustee Indemnity is a version of Directors and Officers Liability insurance written specifically for charities. The main difference between Trustees and Directors is normally that the trustees are not being remunerated. For that reason it would be particularly unjust for a Trustee to be personally financially liable – hence nearly all charities purchase this insurance.
A Trustee Indemnity policy insures the individual involved in governing and running the charity against the cost of defending, or subsequently being liable for, claims made against them for wrongful acts in discharging their duties.
Cover is automatically provided for management and staff who have authority to commit on behalf of the organisation.
It is our opinion that no individual should take up a Trustee position without ensuring there is a policy in place for this liability. We advise cover for GBP 1 million at an absolute minimum – and much more for larger charities.