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Dancing clubs and insurance in the UK
Andrew C Aitchison
Oct. 2, 2021, 6:09 p.m. (Message 72092)
On Fri, 1 Oct 2021, Pia Walker wrote:
> I assume (i.e don't know 😊) that trustee insurance is so Board members
> are protected if an association / organisation is sued as a whole
entity.
https://www.gov.uk/government/publications/charities-and-insurance-cc49/charities-and-ins
urance#trustee-indemnity-insurance
- which only applies to England and Wales and dates from 2012 - says:
Trustee indemnity insurance (TII) covers trustees from having to
personally pay legal claims that are made against them (by their
charity or by a third party), for a breach of trust, or a breach of
duty or negligence committed by them in their capacity as trustees.
The main difference between TII and other types of insurance taken
out for the benefit of the charity is that TII directly protects an
individual trustee, rather than the charity itself. For that reason,
TII is regarded as a form of personal benefit to a trustee and a
charity will need a proper legal authority before it can buy it
using its own funds. Many charities have long had this type of
authority in their governing documents, but if not, s.189 of the
Charities Act now provides a general power to buy TII using charity
funds. The cost must be reasonable and trustees must be sure that
TII is in the best interests of their charity.
--
Andrew C. Aitchison Kendal, UK
xxxxxx@xxxxxxxxx.xx.xx
On 02/10/2021 15:08, Andrew C Aitchison wrote: > > https://www.gov.uk/government/publications/charities-and-insurance- cc49/charities-and-ins > > urance#trustee-indemnity-insurance > - which only applies to England and Wales and dates from 2012 - says: > > Trustee indemnity insurance (TII) covers trustees from having to > personally pay legal claims that are made against them (by their > charity or by a third party), for a breach of trust, or a breach of > duty or negligence committed by them in their capacity as trustees. > > The main difference between TII and other types of insurance taken > out for the benefit of the charity is that TII directly protects an > individual trustee, rather than the charity itself. For that reason, > TII is regarded as a form of personal benefit to a trustee and a > charity will need a proper legal authority before it can buy it > using its own funds. Many charities have long had this type of > authority in their governing documents, but if not, s.189 of the > Charities Act now provides a general power to buy TII using charity > funds. The cost must be reasonable and trustees must be sure that > TII is in the best interests of their charity. > > -- > Andrew C. Aitchison Kendal, UK > xxxxxx@xxxxxxxxx.xx.xx Many thanks Andrew. I can understand the idea of a trustee to a charity where I presume a trustee understands that they have become a trustee and have taken on responsibilities as such. I have more difficulty in the context of a dance club or, for that matter, a cricket club or a debating society. Why are we being advised that it would be very incautious to proceed without this and why has it become unavailable whereas previously (that is pre covid) it was available although difficult to find? This is a serious question for at least one club where dancing has not restarted and, if the advice we have received is correct, is a serious question for others who may be unaware of the 2012 legislation. -- Ian Brown 01423 567576 -- This email has been checked for viruses by AVG. https://www.avg.com