- Charities & Not-for-Profits Hub
Before renewing trustee indemnity insurance, ask the provider to explain who is covered, which trustee activities the policy covers, what is excluded and how a claim must be reported. Request answers against the actual policy wording, rather than relying on a reassuring product name.
This is a preparation guide for a charity board, not a recommendation to buy a particular policy or level of cover. It provides general information and signposting, not legal or financial advice. The Charity Commission guidance linked here applies to England and Wales; charities elsewhere should seek advice for their own jurisdiction.[1][2]
Start with the job the policy is meant to do
The Charity Commission distinguishes trustee indemnity insurance from insurance protecting the charity itself: this cover protects individual trustees against certain claims arising from their trustee role.[1] That distinction is worth putting at the top of your renewal notes. Ask the provider to explain which risks belong under this policy and which need a different conversation.
Do not try to settle every question about personal liability during an insurance renewal. If the board does not understand the charity’s legal structure or who signs its contracts, take that question to a suitably qualified adviser. The Commission’s essential trustee guidance explains why legal structure and the circumstances of a claim matter.[3]
Prepare a short description of the organisation before contacting anyone. Include what it does, where it works and any changes since the previous proposal. Ask whether the information the provider holds still describes the charity accurately.
Ask exactly whose work is covered
Start with the people currently on the board. Ask how the wording defines an insured trustee, whether former trustees are included and how someone joining during the policy year is dealt with. Request a clear explanation of any conditions rather than assuming everyone who helps govern the charity is included.
Describe any overlapping roles. A trustee might also help at a fundraising event or carry out paid professional work for the organisation. Ask the provider to distinguish those activities, and to identify where the trustee policy would or would not respond. Do not treat an answer about one role as an answer about all of them.
Put the questions into a shared renewal note so a new chair or treasurer can follow the discussion. Record the provider’s answer, the relevant wording and anything still unresolved. If the answer is unclear, ask again before presenting it to the board as confirmed cover.
Compare the conditions as well as the price
Ask for the policy wording and schedule alongside the quotation. The Commission advises trustees to consider proper independent professional advice if they lack insurance expertise themselves.[1] Use that advice if the board cannot confidently explain the differences between proposals.
Ask what the limit applies to, whether legal defence costs sit inside that limit and what excess the charity or trustee would have to meet. Ask about exclusions relevant to your activities. These are questions for the provider, not assumptions that every policy handles them in the same way.
Request an explanation of how cover relates to the timing of an alleged act, a claim and its notification. If you are changing provider or considering stopping cover, ask specifically about earlier trustee decisions and future claims. Take advice before making a change you do not understand. Keep any written explanation with the quotation it refers to.
Make the reporting route usable
Ask who should contact the insurer or broker if a concern arises, how quickly notification is required and which contact route to use. Request an explanation of what counts as something that needs reporting. Have the provider identify the relevant clause and describe the process in ordinary language.
Choose a board contact and a deputy who can find the documents. Keep the policy reference and reporting instructions somewhere accessible to those people, rather than only in a departing trustee’s inbox. Agree how the board will handle an absence without leaving an unanswered message until the next meeting.
Do not wait for renewal to seek help with a live complaint or potential claim. Use the existing policy’s reporting instructions and obtain appropriate advice. This guide cannot decide whether a particular event is covered or what you should say in response.
Give the board a decision it can understand
Bring the options, outstanding questions and written answers to the meeting. Ask the adviser to explain any issue that would otherwise leave trustees choosing on price alone. Record why the board selected its approach and who will complete the follow-up. The Commission recommends keeping proper records of trustee decisions and their reasons.[3]
For this week, locate the current wording, check the renewal date and send the provider your unanswered questions. Explore the MH360 charities hub for wider reading about running your organisation. Keep the final insurance decision with the board and appropriately qualified advisers.
Sources
[1] https://www.gov.uk/government/publications/charities-and-insurance-cc49/charities-and-insurance
