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?
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:
- 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.
Read about actual Trustee claim examples.
Having the correct coverage for your exposure is important. Contact NAPLIA if you have any questions.
