Contributor: Grout Insurance Brokers, proud sponsors of The Almshouse Association 80th anniversary event at Southwark Cathedral
Trustees and senior leaders of almshouse charities carry significant responsibility and are often required to make difficult decisions about governance, property, residents, finances, staff, volunteers and regulatory obligations.
Trustees can face personal allegations arising from their role, including alleged:
- Negligence;
- Errors or omissions;
- Wrongful acts (instances or allegations);
- Poor administration of funds;
- Misleading statements;
- Reputational damage;
- Breach of trust or duty.
These claims may be made even where trustees have acted honestly and in good faith, and can be brought by a wide range of parties, including employees, residents or their families, regulators, funders, contractors, or partner organisations. The cost of defending such claims can be substantial, even where the allegation is ultimately not upheld.
Trustee indemnity insurance, often referred to as trustee liability or Directors & Officers cover, is a key safeguard. It can help protect individual trustees and senior decision-makers, and where the policy provides, the charity itself, where claims arise from the exercise of management, administration or governance duties. For this reason, trustee indemnity cover is an important component of many charities’ insurance programmes.
However, cover is not all-encompassing. Policies will not generally respond to fraud, dishonesty, deliberate wrongdoing, criminal or regulatory fines, or matters that fall outside the policy wording. Example scenarios are sometimes mistakenly assumed to be covered under trustee indemnity or D&O cover when they may require a different policy, or may not be insurable. These include:
- Allegations or incidents of fraud/theft (covered by crime/fidelity insurance).
- Failure to pay monies owed to a third party under a contract. (Some policies will cover the personal liability of directors to creditors in the event the organisation is declared insolvent and wrongful trading occurred).
- Failure to deliver services to a third party under a contract.
- Poor commercial decisions, for example, overspending on a project.
It is important to note that cover options and exclusions vary significantly. Almshouse charities should take advice from a broker who understands the sector.
Strong governance, effective risk management, clear financial controls, and robust incident response planning not only reduce exposure to claims but can also improve a charity’s ability to secure suitable insurance. Protecting trustees ultimately supports the long-term stability and confidence of the organisation.
Contact: Grout: info@groutinsure.co.uk | 020 8686 1708
Specialising in insurance for almshouse charities, Grout Insurance Brokers is a team of individuals with deep expertise, some with over 40 years’ experience in advising Almshouses. Incorporated in 2004, Grout has embedded itself within the sector, working closely with The Almshouse Association. Alongside our bespoke scheme specifically designed for Almshouses, we offer a range of insurance for charities, including trustee indemnity cover. Charity Insurance – Grout Insurance Brokers
posted September 2026