Trustee indemnity insurance

As charities and organisations grow, the importance of a board of trustees or management committee increases. When people volunteer as trustees to support you and help look after the best interests of your organisation, you may want to consider how you protect them.

We offer trustee indemnity insurance – sometimes known as directors, trustees and officers’ insurance – to protect trustees or senior decision-makers. This cover can help organisations to attract and retain trustees. Without it, a trustee’s personal assets could be at risk if a claim was to be made that contested a decision they made on behalf of the organisation.

Our trustee indemnity insurance is provided under our Financial and Administration Liability cover.

Our Financial and Administration Liability cover includes the following as standard:

• Protection against maladministration of funds (excluding pension funds)
• Cover for breach of duty, trust, and authority
• Damage and claimants’ costs

The following covers are also included as standard in our online product when you select trustee indemnity cover, or can be added if choosing our tailored insurance: 

• Corporate liability for financial losses arising from your business
• Crime cover to protect you against fraudulent activity from both employees and third-parties

If you would like to purchase cover for your trustees, you will also need to purchase public liability cover from us, which will help protect your volunteers. We know how important volunteers are to not-for-profit organisations, so we can help by offering personal accident cover too.

Trustee indemnity insurance offers financial protection to individual board members in the event that they are sued due to mismanagement in their role as a director or trustee, which is detrimental to the organisation they serve or parties having an interest in it. 

Let’s consider an example. Trustees of a cricket club commission a new pavilion after receiving a firm promise of a grant. They never receive the funds and are unable to pay for work which has already begun. The builder subsequently sues the trustees of the club and their trustee indemnity policy covers the costs of the claim.

Most not-for-profit organisations will have trustees or management committees. This insurance should be considered as part of the protection you provide to those who help guide your organisation.

For more information on trustee indemnity insurance, feel free to contact our friendly team on 0800 917 9420 or email enquiries.team@uk.zurich.com.

FAQs about charity trustee indemnity

Why should our not-for-profit organisation buy trustee indemnity/directors, trustees’ and officers’ cover?

Having this cover will help your trustees and management team feel protected when making important decisions. Without it, they face the risk of not being able to defend a claim brought against them personally.  

Many people may not join a management committee or board of trustees unless the organisation has this cover. So, having it in place may help you to recruit and retain people to these important roles. 

How much trustee indemnity/directors, trustees and officers’ cover do I need?

The amount of cover your organisation needs will depend on its size, your financial transactions, and the activities you carry out. If you’re not sure about the right limit for your organisation, feel free to give us a call on 0800 917 9420.