Pension Trustee Liability Insurance
Steady coverage in unpredictable times
Individuals serving with goodwill as a trustee for an organisational pension plan can be vulnerable to significant personal liabilities. Pension rules are complicated, change comes frequently and markets rise and fall whilst high expectations of fund performance can be a given. In addition, many pension fund boards have decided to change the benefits of their schemes to adapt to financial climates, which has made administration all the more complex.
Travelers’ pension trustees’ liability insurance is designed to protect pension trustees when beneficiaries allege the trustees breached their duty, causing financial losses. The insurance covers the costs of defence, damages, judgments, settlements and awards associated with claims alleging wrongful conduct. Our coverage can apply to nearly any organisation that operates an occupational pension plan – whether it’s a private company, not-for-profit, partnership or insurance broker.
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Text: Pensions.
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Pensions, they can be difficult to understand. And if you offer them as a business, then you should also have a trustee in place, which means added responsibility for the individual, often with no additional pay. You won't see those responsibilities on their business card, but it will be their duty to select advisors and investments, minimise expenses, and follow plan documents exactly.
That's a lot of responsibility and liability. And the risk is always out there. Your company could be sued, and you could be sued. Make the wrong choices, and it could be your money and your assets at risk.
Consider this, two employees close to retirement age discovered they had never enrolled in the company's retirement plan, so they sued the company and its trustees, alleging that they were not properly advised how to enrol. The lost benefit and legal defence costs exceeded 225,000 pounds.
Think they will look to the investment advisor to take the blame? Think again. You pick them. And here's what can happen. An external investment manager for one company's retirement plan wrongly dropped a profitable option and selected another. So employees sued their pension trustees for failing to monitor the advisor. Legal costs and damages exceeded 550,000 pounds
Here's the bottom line. The cost of a pension trustee liability case can top 825,000 pounds. What's more? Regulators are always watching for irregularities.
With risks like these, you need an insurance company who can help protect and prepare you for anything. That's why Pension Trustee Liability Coverage isn't a maybe, but a must-have. Ask your broker how Travellers UK can help ensure your business is protected.
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Logo and text: TRAVELERS. For more information on Pension Trustee Liability coverage, please visit travelers.co.uk/managementliability
The information provided in this video is intended for use as a guideline and is not intended as, nor does it constitute, legal or professional advice. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome. Travelers does not warrant that the information in this video constitutes a complete and finite list of each and every item or procedure related to the topics or issues referenced herein. Furthermore, laws, regulations, standards or codes may change from time to time and you should always refer to the most current requirements and take specific advice when dealing with specific situations. In no event will The Travelers Companies, Inc. or any of its subsidiaries or affiliates be liable in tort or in contract to anyone who has access to or uses this information. Copyright 2016 Travelers Management Limited. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the US and other countries.
Our appetite
We cover
These fall within our appetite, and we’re happy to discuss details.
- Advertising
- Agriculture
- Airlines
- Automotive
- Chemicals
- Construction
- Consultancy
- Engineering
- Food and beverage
- Hotels
- Housing
- Industrial machinery
- Logistics
- Manufacturing – general
- Manufacturing of metals/metal products
- Manufacturing of plastic/plastic products
- Mining
- Oil and gas
- Paper/packaging
- Property developers
- Real estate
- Research and development
- Retail clothing
- Retail consumer durables
- Steel and speciality metals
- Technology
- Textiles
- Transportation
- Utilities
We’ll consider
We may need more information to confirm a fit.
- Gambling and betting
- Legal activities
- Medical and social care
- Pharmaceutical and life sciences
We do not cover
Sorry, we’re currently unable to insure the following.
- Medical marijuana
- Professional sport
- Religious or political organisations
- Tobacco
- Weapons
Pension trustee liability covers & highlights
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Includes employment benefit programmes and employee share ownership programmes
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Available on an aggregate or any one claim basis
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Broad definition of wrongful act
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Court attendance costs
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Cover available for trustees who have retired or resigned
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Employees, trustees, sponsoring employer, corporate trustee and pension scheme reimbursement
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Insured person public relations expenses
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Loss of documents costs
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Third-party service provider pursuit costs
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Warranty-free policies
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IPO
When a company goes from a private to a publicly listed entity, exposures increase. A policy that includes initial public offering (IPO) helps cover the costs associated with defending individuals, should litigation arise.
Public & private companies
Management liability insurance can give company leaders confidence to carry on their duties if something goes wrong. Knowing they are protected helps keep leaders focused on positive business outcomes.
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Let’s start the right conversation
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Find a broker
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Need to call us directly? Contact us.
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