Pension Fund(s) Insurance


Pension Fund Liability
There is an increasing awareness, particularly among trustees, that their position (once regarded as honorary) can give rise to substantial personal liabilities because - unlike the employer company - individual trustees do not enjoy a limited liability status.

Pension Fund trustee liability was originally designed for UK pension funds. The concepts are equally valid for companies with worldwide operations with similar legislative frameworks.

The policy covers:
  • Trustees.
  • Administrators (employees administering the fund).
  • Employer company.
  • Pension fund.
  • Estates of trustees and administrators.
Cover is provided against:

Loss due to a wrongful act as defined, (but likely to include breach of duty, trust or statute; negligence; mis-statement) by a third party service provider (actuary, fund manager or legal adviser) whose actions cause a loss for which trustees or administrators are held responsible.

Pension Fund Crime
Pension Funds, however well run, are susceptible to financial losses due to crime. Cover will ensure that the fund can be replenished and other losses recovered.

The policy covers direct financial loss resulting from:
  • Fraud or dishonesty by past or present trustees, employees and directors of the employer company or any third party service provider (actuary, fund manager or legal adviser) resulting in loss of pension fund assets.
  • Loss of money, securities or any other property from within the premises of the assured or from any banking premises.
  • Loss of money, securities and other property whilst in transit.
  • Loss caused by relying on a cheque or security, which is discovered to be counterfeit, forged, fraudulently altered, lost or stolen.
  • Loss including data reconstruction costs caused by third party computer and funds transfer fraud.
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