Professional Indemnity Insurance for Fiduciary Practitioners

Our industry analysis has revealed a deficiency in the current market offerings for Fiduciary Practitioners, particularly in terms of adequate professional indemnity insurance.

In response, Shackleton Risk has developed a tailored solution to address this critical gap, providing comprehensive indemnity for Fiduciary Practitioners concerning their legal liabilities in administering estates and trusts.

Our policy offers clear and straightforward coverage, safeguarding practitioners against two fundamental risks inherent in their roles as Executors, Curators, and Trustees:

  • Professional Indemnity
  • Misappropriation of Trust Funds

Additionally, the sections of coverage are separate, allowing practitioners the flexibility to select the specific coverage that best suits their needs.

Tailor-made Cover for Executors, Curators and Trustees of Trusts

Professional Indemnity

This section of the policy provides indemnity to the insured against their legal obligation to compensate for any actual or alleged negligent acts, errors, or omissions occurring in the performance of their professional duties, including costs, fees, and expenses incurred by claimants.

In addition to the standard coverage, we offer the following extensions:

  1. Interest-bearing Deposit Advice: Covers the loss of interest suffered by an estate/trust due to the insured's failure to invest funds, subject to a claim.
  2. Loss of Documents: Indemnifies the insured for costs incurred in replacing or restoring lost or damaged documents.
  3. Outside Directors and Officers’ Liability: Protects against legal liability to outside entities for negligent expert estate administration advice, provided emoluments benefit the insured and are declared to the insurer.
  4. Investment Advice: Indemnifies against claims arising from negligent investment advice given to heirs/beneficiaries.
  5. Tax Advice: Covers claims arising from negligent tax advice on taxable transactions, including asset restructuring.
  6. Inter-Company Liability: Protects against claims from Subsidiary and Associated Group Companies for outsourced services, ensuring operations are at an "arm's length".
  7. Defamation: Indemnifies against defamation claims.


Misappropriation of Trust Fund Insurance (MOTF)

This section of the policy provides indemnity to the insured for any legal liabilities arising from the reimbursement and/or replacement of funds and/or property belonging to an estate or trust. These claims stem from instances of theft, unauthorized borrowing, or misappropriation of such funds and/or property by an insured, subject to exclusions and certain conditions:

  • A claim must first be made against the insured by a third party.
  • Funds must have been held in a Third Party Trust Account.
  • The funds and/or property must have been entrusted to the insured as the appointed Executor, Curator, or Trustee of the estate or trust, not as an agent or subcontractor.

MOTF is offered in three ways:

  1. Blanket Basis: Covers all employees.
  2. Named Persons Basis: Specific individuals within the company are named, reducing the premium.
  3. Named Positions Basis: Specific positions within the company, such as those in the finance department, are named.

In contrast to traditional MOTF Policies, we offer the following extensions:

  • Unidentifiable Employee Extension: Applies when theft occurs but the specific employee involved cannot be identified.
  • Computer Crime Extension: Covers instances where a hacker breaches the insured's computer system and steals property or funds from a Third Party Trust Account.

For further details on our professional indemnity insurance for Fiduciary Practitioners or to schedule a consultation, please contact your local broker.