Protecting Trustees, Protecting Trusts

At Activate Insurance Brokers, we appreciate the important role trustees play in managing trusts responsibly and effectively. Trustees face significant legal responsibilities and potential personal liability when managing the affairs of a trust. That’s why having the right Trustee Indemnity Insurance is essential—to provide protection against claims arising from decisions made in the course of their duties.

As an independent insurance broker, we help trustees, charities, and trust organisations find tailored indemnity insurance that offers peace of mind and financial security.

What is Trustee Indemnity Insurance?

Trustee Indemnity Insurance is designed to protect trustees from personal financial loss arising from claims made against them for alleged wrongful acts in their role. This can include claims such as:

• Breach of trust or fiduciary duty
• Negligence or errors in managing trust assets
• Mismanagement or failure to comply with trust terms
• Fraud or dishonesty (depending on policy terms)
• Legal defence costs associated with such claims

This insurance ensures trustees can carry out their duties with confidence, knowing they have protection if things go wrong.

Why Do Trustees Need Indemnity Insurance?

Trustees carry both legal and financial responsibilities, and any mistake—intentional or accidental—can result in claims from beneficiaries or regulatory bodies. Without indemnity insurance:

• Trustees may be personally liable for damages or legal costs
• The financial and reputational impact on trustees and the trust can be severe>
• Trustees might be discouraged from taking on this vital role

Trustee Indemnity Insurance safeguards trustees against these risks, supporting the continued effective management of the trust.

Legal Defence Costs

Cover for legal expenses incurred when defending claims or investigations.

Claims for Breach of Duty

Protection against allegations of breach of fiduciary duty or mismanagement.

Protection Against Negligence Claims

Covers errors, omissions, or negligence in the administration of the trust.

Flexible Policy Limits

Policies tailored to the size and nature of the trust or organisation.

Optional Extensions

Including coverage for trustees of charities, pension funds, or corporate trusts.

Who Should Consider Trustee Indemnity Insurance?

• Individual trustees managing personal or family trusts
• Corporate trustees acting on behalf of clients
• Trustees of charitable organisations and foundations
• Trustees overseeing pension funds or employee benefit schemes