What is Trustees Professional Liability Insurance?
Trustees are not always aware of the need for liability insurance, but individual and professional trustees (attorneys and CPAs) can be held liable for their decisions. These claims can allege mismanagement, conflict of interest, self-dealing, breach of fiduciary duty, misrepresentation, negligent supervision and selection, and professional negligence. An attorney or CPA acting as a trustee is generally not covered under their malpractice insurance.
Trustee professional liability insurance policies that will protect the trustee, and the trustee’s personal assets, from actions arising from their duties as a trustee may include:
Premiums starting at $2,000 annually
Multi-year discount available
Variety of deductible options starting at $2,500
3 Year Optional Extension Period available
Retroactive coverage available
Personal Injury coverage included
Duty to Defend
Why it’s smart to have Trustees Professional Liability Insurance
A trust’s assets declined significantly due to decisions made by the trust’s investment advisor. The trustee was sued for failure to properly select and supervise the investment advisor, failure to ensure that the assets were invested in accordance with the trust’s objectives, and for negligence in tax planning. The case was finally settled after protracted litigation.