To guarantee adequate protection for the trustees and the organization, several important elements should be taken into consideration when thinking about trustee liability insurance. Among these factors are:

Coverage Limits

Assess the policy’s limits of liability to ensure they are sufficient to cover potential claims. This includes both the aggregate limit and per-claim limit.

Scope Of Coverage

Understand what is covered under the policy, including legal defence costs, damages, settlements, and specific areas such as employment practices liability.

Exclusions

Review the exclusions carefully to understand what is not covered by the policy, such as fraud, criminal acts, or known claims prior to the policy inception.

Retroactive Date

Check if the policy has a retroactive date, which indicates the date from which coverage applies for wrongful acts. Claims arising from incidents prior to this date will not be covered.

Claims-Made Basis

Trustee liability insurance is often written on a claims-made basis, meaning coverage is triggered when a claim is made, not when the incident occurred. Ensure continuous coverage and be aware of any gaps.

Policy Endorsements

Consider any endorsements or riders that might be beneficial, such as additional coverage for specific risks or tailored exclusions.

Claims Handling

Understand the insurer’s claims process, including the requirements for reporting claims and the support provided during the claims process.

Policy Term And Renewal

Review the policy terms and the conditions for renewal. 

Regulatory Compliance

Ensure the policy complies with any relevant legal or regulatory requirements for trustees of your specific type of organization.

Indemnification Provisions

Verify the interplay between the insurance policy and the organization’s indemnification provisions to ensure trustees are fully protected.

Policy Costs

Consider the cost of the policy in relation to the coverage provided. This includes premiums, deductibles, and any additional fees for endorsements or riders.

Trustees can select a comprehensive coverage that fits their organization’s demands and dangers by carefully weighing these aspects.