People become trustees for many different reasons. Some do
because it represents a cause close to their heart, whereas others may see
trusteeship as the opportunity to become more involved in the strategic
direction the charity takes. The trustee has a similar responsibility to that
of a director of a company.
By becoming a trustee you have made the decision to
volunteer your time to make life better for others. The last thing on your mind
will be insurance and why would it be! However trustee indemnity insurance is
something you need to think about and understand, because trustees have legal
responsibilities and can be held liable for the charities actions.
As a charity trustee, it makes sense to protect yourself and
give yourself peace of mind that should something go wrong, someone is there to
help you. Trustee indemnity insurance is like a reassuring safety net so that
if a trustee makes an honest mistake the insurance cover can protect them.
So what types of things are covered under insurance?
• Claims
arising as a result of improper investment
• Awkward
legal situations
• Allegations
of defamation.
There are some restrictions that you need to be aware of as
there are some things you won’t be covered for, for example:
• Reckless
acts
• Criminal
fines or penalties imposed by public authorities
• Convictions
for fraud or dishonesty.
You are now probably wondering – how do I get cover? Well, trustees
are able to buy cover out of their own pocket; but remember to check with your
charity as you may already be covered under their insurance. If you need
further details on your policy please contact your insurer or speak to a
specialist broker.
If you are unsure about trustee indemnity insurance or you
need more information please visit the Ecclesiastical
Insurance website for more information or tweet us @Ecclesiastical.
Next Monday we will be blogging about the responsibilities
of a charity trustee so make sure you come back and take a look.
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