Pension Trustee Liability for Financial Institutions
Risk scenarios
Who it's for
Chubb trustee indemnity insurance is ideal for these financial institutions:
- Global and domestic banks
- Building societies
- Asset and fund managers
- Insurance companies
- Clearing houses
- Stockbrokers
What it covers:
Chubb’s broad cover protects your company and trustees for a many costs and claims
The cover will pay for:
- Costs of legal representation including defence cost
- Damages
- Judgements
- Other expenses
You’re protected against these allegations:
- Breach of trust
- Breach of duty
- Breach of statutory provision
- Maladministration
- Negligence
- Administration errors
- Wrongful omissions
- Misstatements or misleading statements
Trustees sued by pension plan members
When a stock surge took a pension account from a deficit position to one of surplus on the eve of transfer, members sued the trustees for failing to properly value the asset. Defence costs alone were estimated to be approximately £2 million with several weeks in court, and the final costs for the trustees were in the region of £5 million. Chubb coverage typically covers these kinds of defence costs and misadministration judgements.
FAQs
Financial institutions insurance provides coverage to asset management firms, banks and lending institutions, and insurance companies. Chubb offers financial institutions a broad range of customised, reliable protection.
Being in a highly regulated industry requires an investment in risk management and compliance. When banks and other financial institutions choose Chubb as their insurance partner, they benefit in many ways. We offer liability and first party insurance for asset managers, banks and lending institutions; there are checks and balances for employee fraud, so avoiding reputational damage, regulatory scrutiny and loss of business.