Trustee liability insurance
It’s often overlooked, but trustees, directors, officers, committee member and governors can be personally held responsible for decision and actions made on behalf of their organisation. A trustee liability insurance policy works in a similar way to professional indemnity insurance. It protects the trustees against the financial impact of legal claims for a breach of trust or duty and negligence in their capacity as a trustee. These claims could be made by third parties such as members of the public or the charity itself. Without a trustee liability insurance in place, the legal costs to defend such a claim would have to be paid personally by the trustee(s) involved.