Trustees’ Liability (including Pension and Charity Trustees)

Trustees’ Liability provides protection against claims of negligence arising from the alleged misappropriation, mismanagement or misuse of funds within a trust – whether it be a pension, charitable, investment or inheritance fund.

The recent economic climate has seen a number of trusts reduce in value due to the falling price of shares in which funds have been invested. The trustees, in their collective position of responsibility, will be protected in the event of a claim arising in such circumstances provided they acted in accordance with the investment guidelines agreed with stakeholders.

Under a Trustees’ liability policy, Trustees are also protected against a claim arising from the alleged negligence of one of their fellow trustees. This is an important point to note given recent events in the financial sector. Although joint and several liability applies to Trustees, if one member has breached the trust, the remaining members are protected by this policy.