Trustee indemnity insurance

Frequently asked questions

• Do I need trustee indemnity insurance?

  It's a little known fact that trustees can be held personally accountable for wrongful actions and decisions during their tenure at a charity - even if the intent was good.

  It's well known that the Charity Commission has taken a hard stance on mismanagement of charities in recent years, and the legal costs involved with defending an allegation of wrongdoing or an investigation can be eye wateringly high. Every trustee should give serious consideration to trustee indemnity insurance - without it, should a claim be brought against the trustee, they may have to fund their defence out of their own personal wealth.

• What kind of claims does trustee indemnity insurance cover against?

  Trustee indemnity insurance claims can be wide-ranging, but some examples are given below:

  Alleged defamation
  Following publication of an article, the charity trustees were sued for defamation by another charity with similar objectives. The claimant stated that certain statements made in the article were untrue and gave a false representation of the charity.

  Claim for alleged trespass
  A neighbouring landowner to the charity claimed that recent construction carried out by the charity infringed on their property. The charity claim their documents showed that the previous owner passed the land over to them, whereas the claimant argued that the land never legally belonged to the previous owner. Trustees were responsible for damages and for restoring the land to its former condition.

  Charity commission investigating Trustees
  The Charity Commission investigated trustees of a charity alleging non-compliance with charity law. The allegations concerned trustees meetings not being compliant with the minimum attendance number required and failure to notify funders that the charity's activities had changed.

• Can we get insurance if we’re not a registered club?

  Yes – you don’t need to be a registered charity to get cover for your group. Many of our clients are small charities or community organisations that are new or are too small to be a registered charity.

• What limit of cover should I choose?

  Many clients and industry bodies with regulatory requirements will require you to have a minimum level of cover for you to undertake a contract, so it's worth checking this before you arrange cover. If you're unsure, give some thought to a worst-case scenario and the likely costs involved in putting your mistake right. We offer a range of limits on insurance, so you're sure to find the right cover for your business.

• Why should I insure with Markel?

  Established over 25 years ago, we've gained an unrivalled understanding of the risks facing small charities and community groups, and our policies are specially designed to protect you.

  We actively support the third sector. Since 2008, we have donated more than £150,000 to our supported charity, Carers Trust, and have supported numerous charity awards including the Third Sector Excellence Awards and Britain's Best Volunteer in partnership with Small Charities Coalition.

  We are a division of Markel International, a Lloyd’s and London market insurer that wrote gross premium totals of $1.2 billion in 2018.

  Still not sure? Call us on 0800 640 6604 - one of our insurance experts will be more than happy to answer any questions you have and talk you through the insurance we offer so you can choose the right cover for your charity or group. Alternatively, get a quote now and call us later if anything needs clarifying.

• We don't have a regular meeting place - can you insure us?

  Yes. We cover hundreds of small charities, community groups and clubs that don't have a regular meeting place and instead rotate between different venues, such as members' homes, village halls and community centres.

• How are Markel Direct regulated?

  Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.