Charities Liability

New provisions introduced by the Charities Act 2006 allow charity trustees to use the charity’s funds to buy personal indemnity insurance to protect themselves personally against wrongful acts.

Wrongful Acts include actual or alleged acts and the policy is designed to pay for and defend these action – unless the governing document specifically prevents it. However, there are limitations on what such policies can cover.  For example, they must exclude:

• the payment of fines imposed in criminal proceedings or penalties incurred as a result of non-compliance with regulatory requirements;
• the cost of an unsuccessful defense against criminal prosecution for fraud, dishonesty, or willful or reckless misconduct;
• liability to the charity as a result of a deliberate failure to act in the interests of the charity.

To make sure that your business gets the right protection at the right price call the Noyce Team to protect your Charity.