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Charities and Trustees Insurance

If you are a trustee of a charity and wish to obtain a quotation to cover both the charity itself and the appointed trustees, do feel free to give us a call or complete our charities and trustees proposal form.

Charity Indemnity Insurance Quote

As a very well intentioned volunteer you may be exposing your self to duties and responsibilities that could hold you personal liable should things go wrong.

The senior officers and trustees of a charity have individual, personal duties and responsibilities for the management and administration of that charity or association, this brings with it the potential of many liabilities. The fact that many people who give their time ‘free’ to charities, acting in either a management capacity or as a trustee, does not absolve them from these very real liabilities.

There are several publications explaining the duties and responsibilities of a trustee, which the charity commission has produced, giving out details on such things, as protection and investment of charities assets such as property, the requirement of financial information to be prepared and available i.e. charity’s accounts, together with guide lines in respect in respect in respect to employees and agents of the charity, as to how they are monitored.

The structure of a charity, where trustees are appointed and the duties of those trustees are formulated by a deed or document controlling that trust, from statute and from common law should a trustee accidentally be neglectful or be ignorant of these duties this could lead to a ‘breach of trust’ and leave that trustee/s personally liable which may be “unlimited liability”.

The important issue for charities or associations to consider is the potential liabilities and exposure they open their trustees, directors and offices to and itself becomes a ‘duty of care’ particularly to employees of that charity or association.

The best form of protection against potential liabilities and there are many, would be in 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'.

A charities and trustees cover will offer a very good protection for those committee members or trustees who look after the affairs of the charity.

The Types of Exposures

  1. Health & Safety – fire safety, electrical and mechanical equipment checks
  2. Insolvency Act (wrongful trading)
  3. Companies Act 2006, being the latest which mainly comes into force in October 2008
  4. Disability Discrimination Act
  5. Employment Equality (Age) Regulations 2006 (Ageism)
  6. Dishonesty to fellow directors
  7. Failure to supervise
  8. Racial and sexual discrimination
  9. EU directives and regulations

Typical Cover for Charities and Trustees

  • Wrongful Act – any actual or alleged wrongful act or omission by committee members or trustees either individually or collectively.
  • Libel & Slander
  • Errors & Omissions
  • Safety & Emergency Regulation
  • Discrimination
  • Dishonesty of fellow directors
  • Professional advice

The policy will cover for defence of these types of allegations and if a trustee or committee member was found to be neglectful of their duties, damages would also be covered. (The policy will not respond to fines, penalties and punitive or exemplary charges).

Other Charities Insurances We Offer

  1. Public Liability
  2. Employers Liability
  3. Building Insurance