Trustees indemnity insurance for charity leadership teams.

Protect your trustees, your governance, and your mission.

Insurance Solutions for for Trustees Indemnity

Trustees and committee members play a vital role in steering charities, community groups, and nonprofits. But even well-meaning decisions can lead to personal liability if something goes wrong. Trustees Indemnity Insurance protects individuals and organisations against claims of mismanagement, breach of duty, or regulatory non-compliance — ensuring your leadership can focus on doing good with confidence.

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What Is Trustees Indemnity Insurance?

Trustees Indemnity Insurance (often called TII) provides essential protection for trustees, directors, and officers of charities, clubs, and voluntary organisations. It covers the cost of defending claims made against them personally for alleged wrongdoing, errors, or omissions committed while carrying out their duties.

Even unpaid volunteers can be held personally liable for financial losses, regulatory breaches, or decisions made in good faith. Trustees Indemnity Insurance ensures that, if a mistake happens or a difficult decision is challenged, personal assets like homes or savings are not at risk.

This cover also helps the organisation itself, protecting its ability to continue operating during investigations or legal proceedings, and demonstrating good governance to regulators and funders.

Typical areas of protection include:

  • Breach of Trust or Duty

    Covers claims alleging that trustees failed to act in the best interests of the organisation or breached their fiduciary duty. This includes mismanagement of funds, poor oversight of financial controls, or decisions made without proper authorisation. Such claims can be stressful and costly to defend, even if no wrongdoing occurred.

  • Negligence or Error in Decision-Making

    Protects trustees from personal liability if an unintentional mistake or oversight causes financial loss or regulatory breach. Whether approving a contract, hiring a supplier, or managing volunteers, a simple administrative error can escalate into a significant claim without this protection in place.

  • Regulatory and Charity Commission Investigations

    Covers the legal costs and professional fees associated with responding to inquiries or investigations launched by the Charity Commission or other regulatory bodies. These proceedings can be lengthy and complex; this cover helps you comply and respond effectively without diverting charitable funds.

  • Employment and HR-Related Claims

    Provides protection against claims of unfair dismissal, discrimination, or breach of employment law involving staff or volunteers. Trustees may be named personally in such cases if they have a role in employment decisions or organisational policy.

  • Mismanagement of Funds or Assets

    Covers situations where trustees are accused of poor financial oversight, misuse of grants, or improper allocation of funds. Even when decisions were made responsibly, this cover ensures defence costs and settlements are managed without threatening personal or organisational finances.

  • Reputational Harm and Crisis Management

    Includes access to crisis communication and PR support following public allegations, negative media coverage, or social backlash. Quick, transparent communication is essential to maintain donor trust and volunteer confidence during challenging times.

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Who Needs Trustees Indemnity Insurance?

Trustees Indemnity cover is essential for anyone involved in the governance or management of a charity, club, or voluntary organisation.

Charitable trusts and foundations

Trustees are responsible for grant allocation, compliance, and governance, all of which carry potential personal liability.

Community interest companies (CICs)

Directors and officers face similar risks to company directors, including claims of mismanagement or failure to comply with regulations.

Religious organisations

Leadership teams overseeing funds, property, and safeguarding responsibilities need protection against governance disputes or allegations of misconduct.

Membership associations and clubs

Committee members and volunteers involved in decision-making can be personally liable for operational or financial missteps.

Educational and training charities

Organisations providing learning, mentoring, or certification programmes must protect trustees overseeing safeguarding and funding responsibilities.

Healthcare and social care charities

Trustees managing services for vulnerable people face additional scrutiny and potential liability for compliance or safeguarding failures.

“When we faced a complex trustee liability claim, Talbot Jones didn't just handle the insurance side - they understood the governance implications and worked with our charity lawyers to achieve the best outcome. Their sector knowledge proved invaluable.”

Chair of Trustees, National Health Charity

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