Should a Trust Protect its Trustees?
Trustees often overlook their need for liability insurance while administering a trust estate. Nonprofessionals and professionals (attorneys and CPAs) can be held personally liable for the decisions made and services provided during their appointment as a trustee.
Claims against trustees may allege mismanagement, conflict of interest, self-dealing, breach of fiduciary duty, misrepresentation, negligent supervision and selection, or professional negligence. Responding to an allegation, even if groundless, can be costly and distracting. Trustees aren’t usually compensated to assume risk. Trust assets are not intended to protect the trustee.
Insurance is readily available and inexpensive. It could be part of any trustee’s compensation.
“Trustee Secure” is a proprietary professional liability insurance product that will protect a broad range of trustees and fiduciaries.
- Affordable, premiums starting at $2,000 annually
- Multi-year premium discount available
- Deductible options starting at $2,500
- Retroactive coverage available
- 3 Year tail available
- Limits up to $5,000,000
- Claims Made policy form
- Duty to Defend policy form
- Personal Injury coverage included
- “A” rated insurer
- Simple application
- Fast quote turnaround