Charities Liability
PI4UK offers cover to charities and associations whether incorporated or not. We extends protection to include all employees make provision to cater for external 'not for profit' and shadow directors. Cover is provided under separate insuring clauses as appropriate.
- Executive Liability
- Professional Indemnity
- Documents
- Employment Practices Liability
- Fidelity
Individuals responsible for the management and administration of a charity or association have many potential liabilities even though they are unpaid. These include:
Innocent or inadvertent breach of trust
The responsibilities of trustees include, the application, protection and investment of the charity's property, supervision of the charity's employees etc. Inadvertent neglect or ignorance of these duties can lead to breach of trust or duty and the potential of personal liability.
Trustees who act honestly have been known to need expensive legal advice and representation when their personal liability and/or indemnified has been bought into question.
Liabilities to third parties
Trustees who provide advice for the charity may incur personal liability for negligent errors or omissions.
Liability as a director
Where a charity or association is incorporated, the specific responsibilities and potential liabilities of directors must be considered, our charities cover protects against liability exposure.
Other Liabilities and Exposures
Those involved in supporting and managing a charity expect its funds to be applied in pursuit of the charities purpose as set out in the charities constitution. However, there are many other potential drains, legitimate or otherwise, upon charity and association resources.
When the charity or association indemnifies an innocent trustee or director
A trustee or director can incurred personal liability in the service of the charity or association even when they have acted honestly and reasonably they are entitled to indemnity from the charity's or association's finances. Our policies provide indemnity for legal wrangles over who pays what.
Professional liability for advice and services
Charities provide specialist services to individuals, businesses, local authorities and government departments on a commercial basis. Charities appointments are diverse in nature with out-sourced contracts that generate important commercial income for the charities involved. Charities owe a duty of care to those with whom they have contracted to do work. When things go wrong, legal redress may well be sought by parties.
Loss of Documents
Charities cover provided by PI4UK covers documents such as deeds (trust or title), accounts, correspondence etc.
Scottish Charities
At the present time there is no 'Charity Law' for the operation of charities in Scotland. The highly respected Scottish Council for Voluntary Organisations has long campaigned for legislation in this regard and the Scottish Parliament is likely to introduce a Charity Bill in the not too distant future Any legislation and consequent trustee liabilities are likely to reflect those faced by their English and Welsh counterparts.
