The fallout from the Oxfam scandal has raised a number of questions for charities in the way they recruit, vet and monitor staff. Seven Oxfam staff who worked in Haiti after the earthquake there in 2011 were sacked or resigned following allegations of sexual misconduct and the use of prostitutes, but questions have now arisen about whether or not the charity had covered up the full facts. T he Charity Commission has expressed concern that Oxfam “may not have fully and frankly disclosed material details about the [Haiti] allegations in 2011, Trustee Indemnity (TI) insurance will cover trustees from personally paying legal claims that are made against them by their charity or a third party for a breach of trust, duty, or negligence. However it will not cover deliberate or reckless wrongdoing or give protection against insolvency. TI premiums can be paid by the trustees, or by the charity if it is authorised by the charity’s constitution. As well as trustee liability, some of the other key areas you might need to consider are: professional indemnity, loss of income, public liability, cyber insurance, PR crisis management, legal expenses, buildings, contents and stock. Charity insurance can be complex, and many charities we deal with require bespoke cover to look after their specific needs. Always make sure that you are dealing with an independent insurance professional who has experience of working
its handling of the incidents since and the impact that these have both had on public trust and confidence.” It has announced that its compliance processes will now be updated to ensure charities in receipt of taxpayer funds include child protection and safeguarding, and making sure that the people who receive aid “have nothing to fear from the people who should be helping them.” The task of rebuilding public trust in Oxfam will no doubt take years, and there is little doubt that the voluntary sector will be subject to increased scrutiny of its procedures relating to recruitment and safeguarding. The events also highlight the need for legal protection for charity trustees in the event of a major crisis arising within an organisation.
All charity trustees can be investigated by the charity commission in the case of a breach of trust, and there are a limited number of specific circumstances where a trustee could be found criminally liable. It is also worth saying that TI is important to have when recruiting new trustees, as giving them this protection provides both personal reassurance, and also ensures your charity is presented as responsible and professional.
with this sector, and who can look at the whole of the market to find a product to suit you.
Scrutton Bland actively works within the third sector to provide insurance, accounting and audit advice. To speak with an insurance adviser call Barry Davis on 01473 267007 email barry. davis@scruttonbland.co.uk or Shirley Greer on 01206 838439 email shirley.greer@scruttonbland.co.uk
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