One stop shop insurance policy for small charities launched

Specialist insurer Hiscox has launched an insurance package to allow small charities, clubs and associations to meet all their liability insurance needs in one policy.

The portfolios include individual liability cover for trustees, as well as cover for employment practices liability and professional and legal liability.

The firm’s management liability underwriting manager Callum Taylor said the package would be particularly attractive to small, unincorporated charities whose trustees are individually responsible for the liabilities of their organisation.

"While delegating responsibilities is common, the trustee retains the ultimate responsibility for any decisions or actions taken: for example the investment of assets, the raising of funds and the acceptance of new members,” he said. “This means that trustees are potentially placing their personal assets at risk if an allegation is made where they have failed to use reasonable care and skill in executing their duties."

Prior to the Charities Act 2006, charities could only buy trustees indemnity insurance with special dispensation from the Charity Commission. Taylor said that he hoped the policy would have a “significant impact” on those charities that haven’t historically purchased coverage because of the “ambiguity” of the Charity Commission’s position.

“There are numerous examples of claims against trustees and the world we are living in means allegations are becoming more and more common,” he said.

Nick Rudnai is director of Case insurance, which also offers trustee indemnity insurance. He said Case had seen a “clear increase in enquiries” about trustee insurance over recent months, but it was too early to say how much of that interest would result in policies being taken out.

“People have been getting quotations and then going back to their trustees to discuss it,” he said. “But trustees typically only meet once a quarter so there is quite a time lag.”

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