FINANCE NEWS: Commission alters insurance laws to help organisations

The Charity Commission has changed its rules to make it easier for trustees to find an insurer.

The issue of trustee indemnity insurance has been the subject of enduring controversy because the commission requires charities to seek its approval every time they want to buy cover from providers.

This is because trustee insurance is seen as a benefit to the trustees, not the charity, and trustees are not allowed to personally benefit from their role.

The regulator is now moving to a system of self-certification. Under the proposal, trustees are to be given the discretion to decide if indemnity insurance is appropriate based on its cost as a proportion of the charity's income.

Rosie Chapman, director of policy at the commission, said: "We've been considering the impact of trustee indemnity insurance, and have decided that this new approach will reduce anxiety among trustees."

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