Superannuation Trustees’ Liability Insurance protects the corporate trustee, its directors, officers, employees and representatives while they execute their duties for the trust.

 

The policy is essentially made up of the risks that usually form part of typical Directors’ & Officers’ Liability and Professional Indemnity Insurance policies. We also seek to broaden the policy to include coverage for direct losses to the fund as a result of fraud and dishonesty.

 

If required, the policy can be extended to include administration, investment management and financial planning services.

 

A Superannuation Trustees’ policy will provide cover for losses arising from:

• Breaches of the Superannuation Industry (Supervision) Act 1993

• Penalties or fines imposed as a result of a breach of the SIS Act

• Requirements of ASIC’s RG126Representation Expenses for Investigations

• Fraudulent acts, such as identity theft

• Extension for advancement of defence costs

 

Importantly, the directors of corporate trustees have a responsibility to not only the company, but also to the fund members. Strong consideration should be given for the addition of a Comprehensive Crime policy so that fund members are protected for direct losses from dishonesty of employees or outside third parties.

 

For more information on Superannuation Trustees' Liability Insurance please contact us.