Financial Institutions Pension Trustee Liability
 For Businesses & Brokers

Pension trustee liability

In recent years, the number of duties and obligations placed on trustees has grown as a result of government intervention, making the role of trustee more onerous than ever. Trustees who breach these increasingly complex responsibilities may place their personal assets at risk or, in certain circumstances, find themselves liable for civil and criminal penalties.

This personal liability stays with a trustee to the grave and, arguably, beyond. Add to the mix a generally more litigious society, scheme members becoming more aware of their pension rights, adverse market conditions and the ever increasing profile of pensions in the news and it is easy to understand trustees’ interest in the protections available to them. Chubb Pension Trustee Liability insurance provides valuable protection for the assets of individual trustees, the pension fund, the sponsoring employer and the employees against claims of wrongdoing.

Product highlights

  • Provides trustees and the sponsoring employer with the confidence to perform their roles secure in the knowledge that they have considerable protection
  • Can advance funding to cover defence costs, in addition to providing cover for settlement of an action if required

Cover

Our standard policy has a broad definition of wrongful acts and will pay for (among others):

  • Damages, judgments, expenses and defence costs
  • Costs of legal representation
  • A comprehensive range of allegations, including:
    • Breach of trust
    • Breach of duty
    • Breach of statutory provision
    • Maladministration
    • Negligence
    • Administration errors
    • Wrongful omissions
    • Misstatements or misleading statements