The importance of having trustees indemnity.
Current press on online charity giving platforms is demonstrating a lot of mismanagement with charity funds. In this situation, these platforms have been frozen and ultimately been investigated to recover the money that has gone missing.
Evidently, in these situations trustees will be tried by a court of law, trustee indemnity insurance will be a cover that would respond to this situation. If they were proven negligent for mismanagement it will cover all the legal defence costs and the sums owed to the charities. However, if the trustees are found guilty of any criminal proceedings the criminal defence costs will be recovered by the insurers from the individual trustees the claims have been paid too.
Furthermore, if trustees are unfortunate enough to be put in this situation and do not have cover in place the law fees are usually very high. These sums of money are not always available at the drop of a hat, in past times individuals have been seen to liquidate their assets to cover these costs.
Moreover, this cover provides essential protection to both the organisation and to the trustees for any wrongful acts conducted by these members of the business.
If you would like any advice on charity trustees indemnity insurance cover please contact us on 01206 760780 and we will be happy to help you.