Pension Trustee Liability Insurance (PTL)
The value of a Pension Trustee Liability Insurance (PTL) policy is that it provides an external resource for reimbursing losses suffered by Pension Funds and their Trustees following claims made by third parties alleging errors and omissions. It also includes the vitally important cover of defending claims and allegations, and any costs concerning mitigation.
Such losses or alleged losses might be suffered as a result of Wrongful Acts (for example Breach of Trust, Negligence, Misrepresentation or Maladministration) involving the actions of the Trustees to the Pension Fund. Other risks that can be covered include civil fines and penalties imposed on the Trustees by The Pensions Regulator and Ombudsman complaints.
A Pension Trustee Liability Insurance policy can also provide cover for Overlooked Beneficiaries (OBI) where a Pension Fund has been, or is being, wound-up.