NAPLIA's Professional Liability Blog / Resources / Articles

Who needs Trustee Liability Insurance?

Posted by Tom Henell on Thu, Dec 01, 2011 @ 10:43 AM

If you act as, or provide services as, a trustee it is important to understand your potential liability and relevant insurance coverage available to you.  Some Professional Liability policies include coverage for services as a trustee.  However, how these services are provided may influence such coverage.  Some questions you should consider?

  1. How are your trustee services invoiced?  By your firm? or, by you individually?  If the latter, you should discuss with your agent.
  2. Are there exclusions in your policy that may impact coverage for your trustee services?  Are you a beneficiary of the trust?
After reviewing your professional liability policy, you may consider purchasing a stand-alone Trustee Professional Liability Policy.  Trustees who are candidates for a stand-alone policy include:
  1. If you are rendering trustee services separate from your firm where the fees inure to your personal benefit.
  2. If you do not have a professional liability policy that includes coverage for your services as a trustee.
  3. If you have a conflict with your professional liability policy that would exclude coverage for your services.
  4. If you are a co-trustee and want to have coverage for liability of your co-trustees.

Trustees are held to a high fiduciary standard and the potential for liability is significant.  

Read about actual Trustee claim examples.

Having the correct coverage for your exposure is important.  Contact NAPLIA if you have any questions.

Tags: accountants, Trustee, liability, professional liability

Trustee Liability & Exposure

Posted by Tom Henell on Thu, Mar 17, 2011 @ 10:31 AM

We frequently receive questions from individuals who have been asked to, or are currently acting as, a Trustee. The most frequent question is in regards to coverage for these services under their (accountants) professional liability policy.

Although each policy form is different, it is our opinion that most accountants professional liability policies intend to provide coverage for an accountants professional services as a Trustee.

Read more about the potential exposures created by acting as a Trustee and specific Risk Management steps you can implement. 

Tags: Trustee, liability