For this reason, it is very important that adequate insurance is in place to protect you in the unfortunate event of you making a mistake that leads to subsequent action.Trustee Indemnity Insurance can also be provided under the more comprehensive Professional Indemnity Insurance policies available. Although not a legal obligation, it does give both you and the trust you are working for, peace of mind and is highly recommended.
Responsibilities of a trustee
These may vary between trusts but the primary responsibilities are:
- Ensuring the smooth and proper running of the trust, so that its obligations are met and funds and assets are deployed appropriately.
- Ensuring the trust acts prudently and ethically when investing or borrowing money.
- Preventing the trust from undertaking any activity that would put its assets or reputation at risk.
Why is Trustee Indemnity Insurance so important?
It protects the individual from any person liability relating to any claims of breach of trust or negligence, as well as non-compliance with laws and regulations.
Protection can also extend to:
- Directors, Officers and Trustees Indemnity
- Reputational Recovery Costs
- Crime cover
- Corporate Liability cover
- Loss of Documents cover
- Professional Services cover
- Employment Practice Liability cover
- Corporate Manslaughter cover
- Emergency Costs.
Trustee Indemnity should not however, be mistaken for blanket protection. Whilst it will provide protection when a trustee has made a mistake or acted wrongfully out of genuine human error, it will not protect any trustee that is deemed to have acted dishonestly or without due care.
The risks of not being properly insured
Without adequate insurance cover, the Trustee would have personal exposure to any claim raised as they are individually accountable for their actions. Not only that, they could also be potentially liable for the actions of other trustees.
Trustees provide a vital role in society and to the trusts they serve, sometimes in an unpaid capacity. They put in a huge amount of personal commitment and can deal with complex matters, so deserve the right protection when carrying out these duties. If you are a trustee, Trustee Indemnity Insurance will give you the confidence to carry out your responsibilities effectively.