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 with this sector, and who can look at the whole of the market to find a product to suit you. Scrutton Bland has been actively working within the third sector since 2007 to provide insurance, accounting and audit advice. To talk to Barry Davis call 01473 267007 email barry.davis@ scruttonbland.co.uk or to talk to Shirley Greer call 01206 838439 or email shirley.greer@scruttonbland. co.uk .
If I am a trustee, how can I protect myself from being responsible for legal claims if something goes wrong with the charity? 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. 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. What other areas do trustees need to look at for charity insurance? 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
I am thinking of becoming a trustee, but I am concerned about what I will be personally liable for. Becoming a charity trustee is like becoming a company director – it is both exciting opportunity and daunting! Before you sign up, check what legal form your charity takes, as that will determine your liabilities. If a charity is incorporated, it will have a ‘legal personality’ which means in most circumstances, it is the charity itself which is responsible for its debt or other liabilities, and the trustees are usually protected from personal liability. If a charity is unincorporated then it is the trustees themselves who enter into legal relationships with third parties, and it is possible they will be exposed to personal liability if for example the charity runs out of funds. You should always ask for clear and reliable financial information to indicate the solvency of the charity,
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