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?
- How are your trustee services invoiced? By your firm? or, by you individually? If the latter, you should discuss with your agent.
- Are there exclusions in your policy that may impact coverage for your trustee services? Are you a beneficiary of the trust?
- If you are rendering trustee services separate from your firm where the fees inure to your personal benefit.
- If you do not have a professional liability policy that includes coverage for your services as a trustee.
- If you have a conflict with your professional liability policy that would exclude coverage for your services.
- 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.
Having the correct coverage for your exposure is important. Contact NAPLIA if you have any questions.