Protecting your board against allegations of mismanagement or breach of duty.
When considering your organisation’s insurance requirements, the unlimited personal liability of your trustees should not be ignored. Company directors, officers or managers are automatically exposed in law to unlimited personal liability – a position shared with trustees of arts organisations.
Examples of trustees’ legal liabilities include:
Trustees are seen under law as liable for their own actions and, in some cases, for actions they have omitted to take. Employees, volunteers or others sanctioned by the trust to act on its behalf also represent a liability to trustees in respect of their actions and omissions.
This exposure, in addition to the continuing trend in the UK of increased litigiousness sees creditors, customers, suppliers, employees, shareholders, regulators and even fellow directors joining the rush to sue directors, officers and trustees.
What is Trustee Liability Insurance?
Trustee Liability cover provides protection for individuals against this exposure to personal financial ruin, through reimbursement of legal costs, expenses and damages.
Who is covered?
Trustees of the board, directors, officers, the company secretary and employees defined within the memorandum and articles as having control of operations.
What is covered?
Toby C., Head of Communications, Academy of Ancient Music
Case Study 1
Defamation: a director was quoted in the press as having concerns as to the propriety of the owner of a supplier. The supplier claimed for defamation – defence costs £32,000.
Case Study 2
An employee brings an action against the company for wrongful employment practices such as discrimination, harassment, or unfair dismissal.
The organisation is taken to court for a breach of the Health and Safety Act.
The organisation is investigated under suspicion of mismanagement of accounting records under the Companies Act 1985.
Case Study 3
Trading while insolvent/disqualification: two directors allowed their company to continue to trade despite knowing it was going into receivership, creating a VAT liability of £50,000. They narrowly avoided being disqualified from being company directors – their insurer paid £100,000 in defence costs.
Specialist & Independent
The arts present a very specific set of risk exposures – and now your digital and online risks can expose you globally. We understand the risks and pressures you face - and we speak your language. We’ll support you with great advice - helping you make good decisions for your organisation.
Our exclusive portfolio policies can help streamline costs, and we’ll always help you stay ahead of the game in managing risk. The show must always go on - insurance isn’t just about processing a claim, it’s about thinking laterally to solve challenges and problems fast.
At La Playa, we’re passionate about the arts and creative industries – many of us are practitioners and active consumers; in fact, La Playa founded the first ever corporate art collective!
We also offer Business Protection (including Key Person Insurance) and Employee Benefits: a joined up approach with a team of advisers working for your best financial interests - all under one roof
Advice You Can Trust
…from an expert who understands you
Premiums start from £560 inclusive of IPT