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Charity Trustees Insurance > Product Guide & Cost

CHARITY & CHARITY TRUSTEES INDEMNITY INSURANCE

This insurance is specifically designed to cover the principal liabilities incurred by charities and their trustees and is available to all recognised charities in the United Kingdom, Channel Islands or Isle of Man. The cover brings peace of mind to the charity trustees, directors and officers who can be secure in the knowledge that most personal losses will be met.
Moreover, certain losses falling upon the charity itself will be indemnified either because they are not recoverable from the trustees or because they arise from specified 'professional services' provided by the charity.

PRODUCT GUIDE

The Charity and Charity Trustees Indemnity Insurance package has five elements:

• trustees (other than trust corporations) are indemnified for damages and legal expenses for which they are legally liable in the capacity of trustee, committee member, director or officer by reason of any 'wrongful act' they commit in that capacity , such as breach of duty or breach of trust. If the charity or the company is obliged to indemnify a trustee or a director, the charity or company can in turn obtain reimbursement.
  
  
• the charity is indemnified for losses borne by the charity which arise from the dishonest, fraudulent or malicious conduct of a trustee but which are not reasonably recoverable from the trustee responsible. (the limit of indemnity for aggregate losses of this type within the period of insurance is £25,000; the charity bears 20% of each loss.)
  
  
• the charity, the company and the trustees are indemnified for their legal liability for damages and legal expenses arising from any act of negligence in the performance of specified professional services provided within the activity of the charity. It is common for charities to provide advice, information or assistance to some section of the public in furtherance of the charitable objects and, even if provided without charge, a liability can arise if the services are not performed with the requisite degree of care. The premium for the total cover may be varied according to the nature of such professional services.
  
  
• the charity and the trustees are indemnified for liability or other loss arising from the loss of documents relating to the charity. (Such losses not involving legal liability are limited to a total of £25,000 in the period of insurance.)
  
  
• every trustee can access a free 24-hour helpline to obtain immediate 'first aid' legal advice on problems arising from the charity. This can be invaluable if a difficulty arises, whether or not a claim subsequently emerges.
  

The standard cover provides an overall aggregate limit of indemnity in the period of insurance of £250,000; an excess of £250 is applied to each loss. Higher limits of indemnity are readily available. Naturally, there are some limitations in the scope of the available indemnity but these have been kept to a minimum; they relate principally to losses which are more appropriately lcovered by public liability or other conventional insurance's, or to losses (such as a fine) for which indemnity would be contrary to public policy.

TYPICAL COST

Limit of Indemnity £250,000 in all

* Insurance Premium Tax at the current rate must be added to these figures. (Please refer to your insurance broker/intermediary or us if you are unsure of the current rate applying.)

If the total gross assets owned by the charity (together with any of which it is custodian trustee) exceed £500,000 in all, the above premiums may be increased. In order to obtain cover (or a quotation for cover where the charity's income, assets or required limit of indemnity exceeds the scale figures above), a Proposal Form must be completed on behalf of the charity. The initial period of insurance can be between six and eighteen months ( at pro rata premium) with subsequent renewal on an annual basis; the full premium plus Insurance Premium Tax is payable before cover commences.

Whilst this guide describes the main features of this class of business, reference should be made to the policy wording for details of the full extent of cover provided. If you require more specific information or a quotation, please contact us.

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