Trustee Indemnity Insurance

For Management Committee members concerned about personal liability, it is worth considering whether trustee indemnity insurance is worthwhile or needed. 

Trustee Indemnity Insurance is a policy that protects Management Committee members in the event of claims against them personally.  The term ‘trustee' refers to Management Committee member of a charity, but the insurance is generally available to non-charitable organisations as well.

The precise scope and restriction of the cover will depend on the terms of the policy.  However, once again this insurance will not cover Management Committee members where personal loss is as a result of negligence on the part of any of the Management Committee. 

Note also that this type of insurance is regarded as a benefit to Management Committee members, since it protects members personally rather than the organisation.  Therefore it should only be funded out of the organisation's resources if the organisation's governing document (e.g. constitution) allows it.

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