Insurance · Trustee liability · 2026

Trustee indemnity insurance: a practical UK overview

Start here for a plain-English explanation of trustee indemnity insurance, how it fits with other charity cover, and which specialist guide answers your next question.

Published by The Committee Room·Last updated 14 July 2026·7 min read

What trustee indemnity insurance is

A TII policy is normally bought in the charity's name for the benefit of the people who govern it. You may also see it labelled trustees' liability, charity directors' and officers' insurance, management liability, or financial and administration liability on a charity package schedule.

The core risk is personal liability arising from a trustee's role: for example, an allegation of breach of trust, breach of fiduciary duty, negligence, mismanagement or maladministration. The policy's most important practical function is often to fund a legal defence while the allegation is investigated or contested.

Exact protection varies. Some policies cover the charity as an entity, regulatory investigations, crisis communications and former trustees; others use lower sub-limits or narrower wording. Read the schedule and full wording, not just the product name.

What it is not

Not permission to ignore trustee duties. Deliberate, dishonest or knowingly improper conduct is not insured.
Not cover for every loss the charity suffers. Public liability, employers' liability, professional indemnity, cyber and property insurance address different risks.
Not a substitute for incorporation. An unincorporated charity can leave trustees personally named on leases and other contracts; TII does not normally solve that contractual-liability gap.
Not a guarantee that a claim will be paid. Prior-known circumstances, conduct exclusions, jurisdiction, sub-limits and notification rules still apply.

For the policy-level detail, use our guide to what trustee indemnity insurance covers and excludes.

Choose the guide that matches your question

Are you deciding whether to buy it?

Use the structure-and-activity decision matrix in do I need trustee indemnity insurance?

Are you checking a policy wording?

Compare the normal inclusions, exclusions, run-off and contracts gap in what does trustee indemnity insurance cover?

Are you setting a budget or reviewing a renewal?

See current price bands and rating factors in our guide to trustee indemnity insurance cost.

Are you ready to compare the market?

Use the provider-by-provider shortlist in our review of the best trustee indemnity insurance providers.

Are you checking whether charity funds can pay?

Read the section 189 rules, CC49 conditions and board-minute checklist in trustee indemnity insurance and the Charity Commission.

How TII fits with other charity insurance

Cover	Main risk	Typical example
Trustee indemnity	Wrongful acts by trustees	Defending an alleged breach of duty
Public liability	Injury or property damage	A visitor is injured at an event
Employers' liability	Employee injury or illness	A paid worker is injured at work
Professional indemnity	Negligent advice or service	A client relies on faulty advice

One incident can engage more than one section, which is why charity package policies are common. Ask the broker to explain which policy responds first and whether defence costs sit inside or outside the stated limit.

A sensible buying sequence

Confirm the organisation's legal structure and who signs its contracts.
Check the current insurance schedule for trustees' indemnity, management liability or financial and administration liability.
Decide whether the risk justifies cover before comparing prices or providers.
Compare like with like: insured people, limit, defence-cost basis, regulatory cover, exclusions and run-off.
Record the trustees' decision and the reason the premium is in the charity's interests.

Frequently asked questions

What is trustee indemnity insurance?+

Trustee indemnity insurance is liability cover for trustees, directors and officers accused of a wrongful act in that role. It commonly funds legal defence costs and may pay covered civil damages up to the policy limit. It is usually bought by the charity, either as a section of a charity package or as standalone cover.

Is trustee indemnity insurance a legal requirement?+

No. Trustee indemnity insurance is optional. Employers' liability is the cover that is normally required by law when a charity employs staff. Whether TII is proportionate depends on the charity's structure, contracts, people, activities and exposure to regulatory action.

Who does trustee indemnity insurance protect?+

A charity-tailored policy normally covers current trustees as a class and may extend to former trustees, directors, officers, committee members and the charity itself. The exact insured persons, entity cover and run-off period vary, so the policy schedule and wording control.

Is trustee indemnity the same as directors' and officers' insurance?+

They address similar personal-liability risks, but charity trustee indemnity wording is designed around charity-law duties and charity regulators. A generic commercial D&O policy may not include the charity-specific extensions an English, Welsh, Scottish or Northern Irish charity needs.

Can a charity pay the premium?+

Usually. For an English or Welsh charity, section 189 of the Charities Act 2011 provides a statutory power to buy TII from charity funds, subject to the governing document and statutory restrictions. Scotland and Northern Ireland have their own regimes. Trustees should record why the purchase is in the charity's interests.

Trustee indemnity guides

Sources

Charity Commission guidance CC49; Charities Act 2011 s.189; Charities and Trustee Investment (Scotland) Act 2005 s.68A; Charity Commission for Northern Ireland guidance; and current UK charity trustee-liability policy summaries and wordings.

General information, not legal or insurance advice. The policy wording and schedule determine whether a particular claim is covered.