Specialist charity broker MCIS and insurer Hiscox have launched a household insurance policy aimed at charity trustees.
MCIS said it recognised that charity trustees represented a safer risk to insurers and approached Hiscox with the aim of developing a suitable household product.
Charity trustees are personally liable for their actions and the actions of their fellow trustees, said the broker.
MCIS honorary president Lord Rix said the situation was a worrying one for many trustees and that the new scheme was an “excellent” solution.
The charity trustee product offers protection against wrongful acts, such as breach of duty and breach of trust, or negligence while acting as a trustee in capacity to a charitable body.
MCIS said that as the cover is personal to an individual and does not conflict with Charity Commission regulations. It also applies if the policyholder is a trustee of more than one charity.
Michael Williams of MCIS, said: “This is a significant development in our commitment to the voluntary sector, which continues to grow in size and importance.
“For a long time we have felt that people who are in a position of trustee of a charity or not for profit organisation represent a superior risk to insurers and should pay premiums that reflect this.
“The additional benefits represent a unique opportunity to recognise some of the additional risks that trustees are exposed to and provide a cost effective response for further peace of mind”
