How do charity trustees protect themselves from personal liability?

How do charity trustees protect themselves from personal liability?

Charity trustees are the group of people dictating the direction a charity takes and how it is operated. As such, they are ultimately responsible for actions performed by the charity that are considered questionable or harmful. As a trustee, it is therefore important that you protect yourself with trustee indemnity insurance.

The risk of personal liability for trustees

Having all these responsibilities means that trustees are easy to point the blame at when a charity fails to follow regulations or if its finances are mishandled. If your decision-making, no matter how well-intentioned, lands your charity in hot water, without comprehensive trustee indemnity insurance you may find yourself having to pay off any debts or losses the charity incurs from your own pocket!

What is trustee indemnity insurance?

Trustee indemnity insurance protects a trustee in the case of a claim being made against them by the charity itself or a third party for neglecting their duties of care, prudence or to comply with regulations. The protection offered by trustee indemnity insurance is wide-ranging, and each charity may have different regulations in place that make your requirements as a trustee different.


How do I limit my risk as a trustee?

  • Make sure that you are up to date and totally familiar with your charity’s code of conduct and any legal regulations that may affect your actions
  • If you are unsure about the legality of an action, consult with a professional to advise you
  • Implement financial and managerial guidelines for all levels for the charity to follow
  • Make sure that you are up to date with current data protection regulations
  • Ensure that the charity has the resources to meet the requirements of any contract it signs
  • Considering trustee indemnity insurance to protect your charity and trustees

We are happy to discuss your requirements with you to find the perfect trustee indemnity insurance to suit you and your charity. Contact us on 01202 754900 to get started!