Community Land Trust Documents

Management Liability Package Insurance

One Broker has partnered with The National CLT Network to provide members with a Management Liability package. As a member you will benefit from the following covers which are included as part of your membership package.

• Directors & Officers Liability - £1,000,000 for any one claim (including legal defence costs and expenses)
• Company Legal Liability - £1,000,000 for any one claim (including legal defence costs and expenses)

Who is covered?

You don't need to be called a 'director' or ‘officer’ to be covered by a Management Liability policy. You could be a:

• Trustee
• Governor
• Committee member
• Employee
• Volunteer
• Key decision-maker.

Anyone accountable for the way their charity, club or community group is run is protected by this insurance.

This can be a particularly important area for a CIC should someone challenge how funds are being used and whether their actions could be considered in the best interests of the company’s social enterprise ethos.   

What is Directors & Officers Liability?

The aim of D&O insurance is to provide financial protection against the consequences of actual or alleged “wrongful acts”. Common allegation examples:

• Mismanagement of the organisation’s assets
• Inefficient administration
• Violations of bylaws
• Improper self-dealing
• False or misleading reports
• Continual absence from meetings
• Failure to file an annual report

Many companies and not-for-profit organisations believe that having limited company status protects them from being sued personally.

This is not the case. A company's limited status offers financial protection to the shareholders in the event that the company has bad debt. It does NOT protect the company's directors and officers from the consequences of their business decisions and activities, which may, under law, result in unlimited personal liability to the extent of their entire financial worth.

The personal assets of a director are at risk as a result of a wrongful act, either actual or alleged! And it’s important to remember that you don't have to be guilty to incur legal defence costs.

What is Company Legal Liability?

This is similar to D&O insurance but defends claims made against the organisation as opposed to individuals. These claims range from breach of data protection, health and safety, taxation and other regulatory claims. Essentially, a claim can be brought by any third party who claims the organisation has committed a ‘wrongful’ or an ‘illegal’ act.

Other policies available

We understand the diverse and specialised nature that CLT groups present and should you require. We can undertake a full appraisal so we can understand your organisation’s insurance needs. We make full recommendations and will design an insurance programme, creating a comprehensive solution for you.

The covers listed below are not included within your membership package. If you would like further details on any of the following please contact us and we can arrange policies to suit your individual Community Land Trust.

• • Public Liability and Products Liability Insurance
    • Financial protection in the event of injury or harm to the public or their property caused by your organisation or its products (includes cover for fundraising events and stallholders).

• • Employers’ Liability Insurance
    • Provides protection in the event that employees or volunteers suffer injury or illness as a result of your organisation and decide to take legal action.
  • Property Protection Insurance
    • Cover for residential properties, offices, community facilities, contents & stock.
  • Landlord Insurance
    • Protect tenanted properties, contents and your liabilities as a property owner.
  • Laptop, tablet, mobile phone or portable equipment
    • Covers the cost to repair or replace critical equipment.
  • Fidelity cover
    • Designed to replace funds or property stolen by employees or volunteers.
  • Property Developers Insurance
    • For contract works, JCT insurance and building warranties.
  • Professional Indemnity Insurance
    • If your CLT provides advice in return for a fee, Professional Indemnity Insurance covers the cost of legal fees and compensation awarded if your advice is incorrect.
  • Fleet Insurance
    • Protection for your vehicles on the road or parked.
  • Legal expenses, travel & personal accident options are also available.

Contact Phil Smith to find out more today.