What is the limit of the liability of LEP Trustees?
The National Ecumenical Officers advise that Trustee liability is unlimited. Trustees, therefore, should take out Trustee Indemnity Insurance. The Baptist Union of Great Britain offers to those who are Charity Trustees in Baptist churches a leaflet Help I’m a Charity Trustee. Please check their website to ensure that our download is the most up-to-date advice.
Again, please check that this is still accurate, but this is the relevant paragraph:
Trustee Indemnity Insurance
It is possible to purchase trustee indemnity insurance. This can sometimes offer some protection to Charity Trustees against personal liability. A new power in the Charities Act 2006 allows Charity Trustees to use church funds to buy indemnity insurance – unless the church?s governing document specifically prevents it, which is unlikely. Charity Trustees must be satisfied that the purchase of a Trustee Indemnity Insurance Policy is in the best interests of the charity. You will want to weigh up the benefits and costs of this insurance. Remember that even if you have insurance it will be a condition of the policy that you are not negligent, so if you are able to meet the policy conditions then you are very unlikely to be doing anything that could possibly give rise to a financial claim. The amount of cover may be limited. Some people appreciate this kind of insurance but it does not reduce your responsibility to follow ‘best practice’ and to act sensibly and be accountable with your co-trustees for your actions and decisions. However, it can be beneficial in helping meet the legal costs of defending a claim, and you will have to comply with the terms of the policy.
Please note that this is relevant to any Trustees, including those of Intermediate Bodies.