Financial Lines - Pension Truatee Liability

Pension Trustee Liability
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Pension Trustee Liability Insurance

The 2004 Pensions Act changed the environment for occupational pension schemes. The Pensions Regulator is determined to raise trustee performance standards, particularly for smaller occupational schemes.

Trustees are expected to understand and keep up to date with the laws and investment principles of their schemes. They must challenge their expert advisors and their employers when they need to. Failure in these responsibilities could result in being named, shamed and disqualified from being trustees. Fines and contribution notices may be issued against their companies.

This may create a difficult situation, as many trustees are unpaid and may be fellow employees, not experts. Pension trustee liability insurance is designed to meet defence costs, awards, damages, and investigation costs of anyone like trustees, secretaries or administrators involved in running the pension scheme who are accused of mistakes or oversights in their duties.

It also provides cover for the company and its pension plan. That’s because while in theory the trustee may be personally liable, in practice the risk is often carried by the employer or the pension plan by indemnities and exoneration clauses.

Our cover is designed to ensure that when they need it, individuals and business can rely on the best possible professional guidance and legal defence, as well as cover for fines, contribution notices and damages if fault is found.

Market

UK companies with a pension plan.

Features & Benefits

    • 12 year discovery period protecting retired trustees, even if the policy has not been renewed 
    • Professional advice can be sought in the event of a query from the Pensions Regulator, even if there’s no time to contact Chartis first

Cover

    • 12 year discovery period for retired trustees 
    • Company cover for lost or stolen plan documents 
    • Cover for contribution notices issued against pension trustees and associated connected persons 
    • Covers monetary awards by the Pensions Regulator and Pension Ombudsman
    • Reimbursement of a payment made by a plan pursuant to a trustee exoneration clause
Chartis Offerings