Trustees' Liability

Whether remunerated or not, trustees face a significant personal liability should an error be made or a claim brought against them as a result of carrying out their duties.  Trustees with a professional background such as an accountant or a solicitor may have some protection under their own professional covers – however when advice strays beyond their professional expertise – would their insurance respond?  A separate trustees indemnity policy is essential for the protection of all trustees.

Claims examples could include:

  • Tax liabilities arising on trust assets through poor decision making
  • Under-insuring or indeed failing to insure the assets of a trust
  • Paying or distributing assets to the incorrect beneficiary
  • Selling assets without the prior agreement of all trustees
  • Undeclared conflicts of interest or treating beneficiaries unequally