Pension Trustee Liability Insurance 

Protection for scheme trustees, the company and the plan itself  

Although often unpaid, trustees are expected to understand and keep up to date with the laws and investment principles of their schemes. They must challenge their advisors and employers when they need to. Failure can result in fines or other penalties against them and the company.

Pension Trustee Liability covers defence costs, awards and damages of trustees and individuals administering a pension scheme or any employee benefit or welfare plan.  It also covers the Company for risks assumed via indemnities and exoneration clauses

Trustees' regulatory responsibilities

The Pensions Regulator’s aim to raise the standards of trustees’ pension governance with a clear code of practice, is backed by legislation and the Pension Act requires trustees to have an understanding of trust law and investment principles.  Trustees may need to demonstrate to regulator that they have kept up to dat 

Regulatory teeth

The Pensions Regulator can levy fines, disqualify trustees and “name and shame” trustees.  It can demand information from trustees, employers, administrators - anyone it thinks might hold relevant information. It can inspect premises, seize and copy documentation, and it is a criminal offence if anyone fails to co-operate. 

CorporateGuard Pension Trustee Liability

What is covered?

Contribution notices against individual insured person

Spouse or domestic partner of insured person

Cover for acquired or newly created plans within threshold

Includes cover for loss of documents, sub limited to £100,000

Investigation costs in connection with preparing for and attending an investigation

Optional cover available for ERISA plans

Features & Benefits

12 year Discovery period for retired trustees in the event of non-renewal

Emergency defence costs up to 10% of the limit of liability available if insurer’s consent is unavailable

Access to Pension Crisis Response Team and Pension Law Advice

Bilateral Discovery period if policy not renewed

Who is it for?

Pension Trustee Liability is suitable for any company operating an occupational pension plan as well as company or employee benefit plans.

See our Risk Appetite

Why choose PTL from AIG?

Trustee responsibilities

Although often unpaid, trustees are expected to understand and keep up to date with the laws and investment principles of their schemes. They must challenge their advisors and employers when they need to. Failure can result in fines or other penalties against them and the company.

Trustee protection

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.

Company protection

Pension trustee liability insurance 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

Pension Crisis Helpline

CorporateGuard Pension Trustee policyholders are entitled to call on the services of the Pension Crisis Helpline

  • Expert, confidential advice on aspects, of pension legislation, regulation, or an issue that any insured feels could give rise to a claim
  • Up to an hour of expert telephone-based advice on each issue

The Pension Crisis Helpline is provided at no extra cost within all CorporateGuard Pension Trustee policies

Claims First

See our Value Proposition for Financial Lines Claims 

Related Documents

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