Superannuation Trustees Liability Insurance

Superannuation Trustees Liability Insurance policy is a tailored solution to meet the complex exposures faced by Australian superannuation trustees. Standard insurance products may not provide cover for the liability placed on trustees, so for protection of the trustee and the fund assets, the trustee needs appropriate trustee liability insurance.

Superannuation trustees owe a fiduciary duty to the trust beneficiaries, however, this common law duty is not the only one imposed upon them. Each state and territory in Australia has specific trust legislation, and the federal government has taken control of superannuation funds with the Superannuation Industry (Supervision) Act 1993. Other state and federal laws also impact the industry, such as stamp duties, taxation, industrial relations, discrimination, social security and family laws. The corporate trustee is also governed by corporations law which imposes additional duties on the trustee as a director or officer. The trustee is personally accountable for their actions and the complex legal environment in which they operate means that these exposures need to be mitigated with an insurance policy that is tailored specifically to superannuation trustees.

Today’s superannuation trustee faces a broad range of exposures. Some examples of specific risks follow:

• Failure to maintain adequate supervision to prevent the fraudulent withdrawal of fund assets;
• Conflicts of interest between the duty owed to the fund and the employer company;
• Failure to monitor an outside fund manager’s poor performance, which could lead to a direct claim;
• Failure to ensure the collection of contributions from an employer company;
• Transferring assets between schemes being affected under the wrong rules;
• Incorrect advice regarding benefits to a retiree;
• The sale of fund assets in a depressed market.

You can be sure that you have a dedicated partner in Chartis.  We are focused on servicing your insurance needs today and anticipating tomorrow’s.  We aim for each client relationship to be a true partnership and will take on your challenges as if they were our own. 

By meeting straightforward needs as well as solving complex issues, we make your confidence our number one priority. 

Chartis is a world leading property-casualty and general insurance organisation serving more than 70 million clients around the world. With one of the industry's most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.