As an independent trustee, you are serving in a personal capacity and your personal assets could be at risk – Trustee E&O Insurance is an important protection for you.
An independent trustee is someone appointed to administer a trust who is not related to the grantor or beneficiaries and has no other direct personal interest in the trust. They act as an independent third party to impartially manage and distribute trust assets according to the trust terms.
Obtaining liability insurance, called Trustee E&O Insurance (Errors & Omissions) is critical protection for independent trustees to protect their personal assets from claims brought by beneficiaries or other interested parties.
Beneficiaries are not only family members, and may include other individuals, charities, creditors, and taxing authorities. And beneficiaries, and even unrelated third parties, might bring claims. Claims could allege breach of mismanagement, fiduciary duty, improper investment decisions, distributions that favor certain parties over others, self-dealing, or conflicts of interest, among other issues.
A quality Trustee E&O Insurance policy provides both defense costs and losses if a claim is made. This allows the independent trustee to fulfill their responsibilities without putting their personal assets at risk. With the complexities involved in trust administration, insurance provides essential protection for independent trustees serving in this vital fiduciary role.
eSpecialty Insurance is your specialty insurance expert. We have the underwriter access and expertise to deliver multiple Trustee E&O Insurance proposals from a range of competitive insurers, along with expertise to help you evaluate your exposures and choose the best combination of comprehensive coverage and price. We look forward to working with you.
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