Superannuation Trustees’ Liability Insurance
Superannuation Trustees’ Liability insurance protects the Corporate Trustee, its Directors, Officers, Employees and Representatives while they execute their duties and/or the functions 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 from fraud and dishonesty that will be covered by a Comprehensive Crime policy.
If required, the policy can also 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 that are imposed as a result of a breach of the SIS Act
- Requirements of ASIC’s RG126
- Representation Expenses for Investigations
- Extension for Advancement of Defence Costs
- Losses through fraudulent acts, such as identity theft
Importantly, the directors of corporate trustees have a responsibility to not only the entity or 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 3rd parties.