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Trustee indemnity insurance

Financial protection for trustees, directors, governors, officers and committee members of charities, clubs, associations or not-for-profit organisations.

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What does trustee indemnity insurance cover?

Whether you’re a small community charity or a large trust, we know that choosing the right cover to suit your requirements is crucial. Our trustees’ indemnity insurance will provide the following covers:

Bullet Point

Legal defence costs

Provides protection against legal defence costs and damages awarded against one of your directors, trustees or officers. This includes costs and damages arising from a wrongful act by them in the course of their statutory duties.

Bullet Point

Employment practices liability

Protection for your organisation against any act, error or omission where you are held vicariously liable. This is relating to any breach of any employment contract, wrongful dismissal or termination of employment, unfair dismissal, unequal pay, discrimination and more.

Bullet Point

Incidental professional advice

We’ll provide professional guidance in the event of a claim to support your organisation in recovering from any resulting impact of a trustee’s indemnity claim.

Bullet Point

Cover against fraud and dishonesty

As well as cover for wrongful acts of fraud and dishonesty, we’ll also provide cover for the legal costs of defending a claim.

What is trustees’ indemnity insurance?


Trustee indemnity insurance (or “trustee liability insurance”) financially protects individuals in positions of authority – such as trustees or board members - if a claim is made against them for committing a wrongful act that is damaging to the organisation.

We’re only human, and even trustees, directors and officers can suffer lapses in judgement from time to time. But unlike a standard employee, a trustee can be held personally responsible for any financial losses that occur from their mismanagement.

Without this cover, individuals can be held personally liable to the full extent of their wealth or assets – including covering the cost of compensation, Charity Commission investigations and legal proceedings. That’s why, in addition to providing cover for settlement of a wrongful act, trustee indemnity insurance also provides cover for the legal costs of defending the claim.

Frequently asked questions about trustee indemnity insurance

Does your charity need trustee insurance? Read our frequently asked questions below to find out more about what’s covered, and whether you need any cover in place for your board of trustees, directors or officers.

What is a trustee?


In relation to charities, a trustee is an individual (or board member) given administrative and financial authority over an organisation.

Why is trustee indemnity insurance important for charities?


Your board of trustees will be a significant cog in the wheel of your organisation, and bear the responsibility for important decisions on a day-to-day basis. But this can also make them susceptible to claims of mismanagement - which could potentially result in a third party compensation claim, for which the trustee could be held personally liable.

It’s also important to remember that many trustees will be volunteers, and may not have much PR or administrative experience. So having trustee insurance in place is a simple way to ensure your trustees are both financially protected and given the support and guidance they need to be able to deal with the fallout from a reputational crisis.

Do charity trustees need indemnity insurance?


If you hold the role of trustee, director, officer, committee member or governor of a public organisation, you may need trustee indemnity insurance. This is because you can be held personally responsible for decisions and actions made on behalf of the organisation. You could also be sued or prosecuted for any mistakes and their consequences during the performance of your statutory duties.

Often these policies can be extended to include claims made against the organisation as well as an individual.

Why does my charity need trustee indemnity insurance?

Trustees have a duty to protect a charity’s assets. While it’s not a legal requirement, having insurance in place is an easy way for a trustee, director or officer to ensure they’re fulfilling this duty for an organisation.

Not only that, but trustee insurance can provide invaluable support in dealing with the aftermath of a claim. This can include reputational damage and legal proceedings. This support can take a lot of the pressure off your trustees who have given up so much time to support the organisation.

What’s an example of a trustee indemnity insurance claim?


One of your trustees writes an article about another charity that works in your sector. In response, the charity sues for alleged defamation. They claim the article contained untrue statements about their organisation’s goals.

Under these circumstances, your trustee indemnity insurance policy would provide cover for any relating legal defence costs. This includes compensation and any required incidental professional advice to support recovering from any resulting reputational impact.

What level of trustee liability cover do I need?


The level of trustee indemnity insurance your charity needs will depend on a number of factors, so it’s useful to have the following information to hand when you get a trustee indemnity insurance quote:

  • How many trustees / directors / officers / board members does your organisation have?
  • What is the gross annual income?
  • What type of organisation is it e.g. a conservation group versus an education group?
  • How many volunteers / employees are there?
  • Does your organisation undertake any third-party contracts?
  • Do you operate overseas?
  • Who are your service users e.g. are they children, vulnerable adults?

Endsleigh can provide up to £5 million trustee liability insurance.

Is criminal or fraudulent trustee conduct covered?


Yes, Endsleigh’s trustee indemnity insurance provides cover for loss of money or goods arising from the dishonest or fraudulent acts of your trustees, directors or board members.

What’s the difference between trustee liability and directors and officers’ insurance?


The covers provided under these policies are essentially the same. The key difference is that directors and officers’ liability insurance is more commonly provided for businesses, whereas trustee indemnity insurance is provided for charities, community groups and not-for-profit organisations.

Why Endsleigh for charity trustee indemnity insurance?


With over 30 years’ experience providing insurance for the charity and volunteer sectors, we work with market-leading insurers to build expert solutions for our customers. With Endsleigh, you’ll receive access to a dedicated specialist account executive who will provide expert consultation and guidance on your not-for-profit insurance requirements, ensuring you find the right cover for your organisation.

Your guide to charity insurance

Still have some questions about trustee indemnity insurance in the UK? Find out more in our guides.

What types of charity insurance are there?

Helpful advice for charities

Charity insurance jargon buster

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Call us on 0333 234 1387