Trustee liability insurance

Trustee liability insurance will generally protect trustees from two types of action:

• acts which are properly undertaken in the administration of the charity 
• acts in breach of trust, but made as a result of an honest mistake.

Trustees may use the charity’s funds to pay for trustee liability insurance, unless there is an explicit prohibition in the charity's governing document.

The Charity Commission does not allow trustee liability insurance cover for acts which trustees knew or ought to have known were wrong, or for acts or omissions made in reckless disregard of whether they were right or wrong.