The senior officers and trustees of a charity have individual personal duties and responsibilities for the management and administration of that charity or association, bringing with it the potential of many liabilities. The fact that many people who give their time 'free' to charities, acting in either a management capacity or as a trustee, does not absolve them from these very real liabilities.
There are several publications explaining the duties and responsibilities of a trustee, which the charity commission has produced, giving out details on such things as protection and investment of charity assets.
The structure of a charity, where trustees are appointed and the duties of those trustees are formulated by a deed or document controlling that trust, from statute and from common law; should a trustee accidentally be neglectful or be ignorant of these duties, this could lead to a 'breach of trust'.
The important issue for charities or associations to consider is the potential liabilities and exposures they subject their trustees, directors and officers to, and itself becomes a 'duty of care' particularly to employees of that charity or association.
The best form of protection against potential liabilities (and there are many) would be to arrange an insurance policy Charities and Trustees. However, there are guidelines that you need to perhaps consider - the Charity Commission for England and Wales has summarised these in their publication 'CC49'.
In general, the charity needs a broadly worded policy to indicate cover for the following exposures:
AXA's policy also includes specialist advice and support on employment, legal and regulatory issues from a leading solicitor, Rradar.
Cover can protect your trustees volunteers and fundraisers in the event of a claim arising.
Contact one of our experienced brokers on +44 (0) 1323 648000 or e-mail us at firstname.lastname@example.org.