Trustees are faced with a greater number of statutory duties brought into force by the Pensions Act 1995. A duty of care was subsequently imposed on trustees under the Trustee Act 2000. More recently the Pensions Act 2004 introduces a number of changes to the duties and obligations of trustees including a new statutory requirement for ‘knowledge and understanding’.
Trustees who breach their duties or responsibilities may place their personal assets at risk should they be found to be personally liable for any loss experienced as a result of their actions. Trustees may also incur criminal penalties through acting improperly or fraudulently, or civil penalties by contravening statutory requirements.
Pension Trustee Liability Insurance
With such a lot at stake Pension Trustee Liability insurance should be considered. Park Insurance offers Pension Trustee Liability, through Ace Insurance for the areas of responsibility owed by trustees and the potential risks they face. This policy is regularly reviewed to ensure that it continues to respond to the risks faced in the changing pension’s environment. The policy is written in plain language with appropriate pension’s terminology.
It is vital to buy the right levels of cover for trustees when litigation is an ever present threat. The pension trustee liability product provided by Park Insurance’s chosen provider gives cost effective protection for the assets of individual trustees, the pension scheme, the sponsoring employer and their employees.
In addition to:
- Breach of trust, duty or statutory provision
- Maladministration, negligence or administrative errors
- Wrongful omissions, or misstatements
- Loss arising from damage loss or destruction of pension scheme documents for which the trustees are responsible
This policy can provide financial protection for:
- Public relations expenses
- Civil fines and penalties, where insurable
- Court application costs
- Emergency costs
- Third party pursuit extension
Park Insurance has chosen to work with a highly respected underwriting team, more than a third of whom hold the PMI Trustees Certificate. This insurer has been writing pension trustee liability insurance since 1997 and is committed to the product for the long term.
- When purchasing Pension Trustee Liability insurance through Park Insurance, trustees will receive:
- Welcome pack of useful information for trustees
- Trustee Focus Newsletter (issued from time to time)
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