Trustee liability insurance

Trustees and individual liability insurance is designed to safeguard leaders of public-facing organisations against personal risk. It provides cover for the leaders, trustees or key employees of:

• Charities
• Non-profits
• Not-for-profit organisations.

Trustees and directors can have unlimited personal liability and claims can be made personally against them. This cover can help if a trustee is accused of a wrongful act, such as:

• Breach of fiduciary or statutory duty
• Negligence
• Wrongful trading in insolvency
• An error or omission.

Insurance for trustees can help cover costs when defending or settling claims. Your policy could protect you against:

• Fines
• Compensation
• Legal costs.

This cover is for those working outside the for-profit sector. It also applies to risks such as:

• Investigation by public bodies
• Reputational risk.

Get a quote for trustee liability insurance. Contact us on 0808 2736 570 Mon-Fri 9 am-5 pm.

If you’re the leader of a for-profit company, directors’ and officers’ insurance may be a better fit.

Are you in charge of a charity’s work? Maybe you run a trust or help to oversee a non-profit. Whether your title is trustee or not, you might need trustees and individual liability insurance.

Because, if you direct all or part of a charity’s work you’ll likely hold legal trustee responsibilities. This applies whether you’re:

• The sole employee
• Part of a management committee.

Regulation governs not-for-profit work - all charities in England and Wales are regulated by the Charity Commission (external link), for example. Even the founding trustee of a small organisation could face claims or investigations. This could lead to trustee disqualification, and you may be ordered to pay compensation if losing a legal case.

Incorporated vs unincorporated charities

Charity leaders can be held personally liable for mistakes in leadership. This risk may be higher in unincorporated charities.

• Charities with a corporate body structure (external link) can act in their own name, like a regular business. Those with an unincorporated structure act in the name of the people who run them
• In unincorporated charities, individuals can be personally liable for the charity’s actions (external link). For example, paying its debts or meeting contractual terms.

If you’re responsible for a charity’s decisions, trustee liability insurance can help protect you. If legal action is launched, this product can step in.

Charity employee injuries

If an employee is injured or even killed at work, trustees could be liable for a breach of: 

• Corporate Manslaughter and Homicide Act 2007 (external link); or
• Health and Safety at Work Act 1974 (external link).

Any trustee could face potential legal action in unforeseen circumstances. Our insurance may help with the court case and fees.

The amount of trustee liability insurance you need depends on factors such as:

• The size of the organisation you run
• How much money it turns over.

Say you’re part of a large, well-known charity and someone takes you to court for negligence, they may ask for more compensation than if you were part of a smaller organisation.

You may consider buying more cover if your charity works in a highly scrutinised space. For example, if you:

• Process grants
• Work with vulnerable people.

Our flexible indemnity insurance policies can cover from £100,000 up to £10m. Our experts work with you to find the right level of protection.

Hiscox trustee liability insurance covers you for:

• Investigations by public bodies such as the Charity Commission
• Support if an insured person’s assets are seized
• Health and safety issues, including corporate manslaughter cases
• Employment tribunals and disputes made personally against individuals
• Charges related to breaches of duty or trust, or defamation
• Reputational damage. We’ll support with certain public relations costs to minimise the impact on a charity.

There are a few risks our trustee liability insurance doesn’t cover, including:

• Deliberate or dishonest acts
• Prior claims, investigations and circumstances
• Prior litigation
• Pension or employee benefit schemes
• Claims for bodily injury or property damage
• Claims relating to wrongful acts occurring after an acquisition.

You must pay the amount of the excess for each claim. Plus, there may be further significant exclusions to the cover we offer.

Please refer to the policy documents for the full details of inclusions and exclusions of this cover. Policy documents are available when purchasing online. You can also contact our customer services team for more information.