The need for, and required extent of professional indemnity cover, is a difficult topic trustees regularly grapple with.
We recently obtained an easy comprehensible explanation compiled by a global short-term broker house.
It explains why trustees should consider their fund to take out cover rather than being cover through the employer's policy:
- what are trustees duties;
- why is cover needed;
what is the scope of cover -
- fraud or dishonesty of any officer;
- theft by any person;
- errors and omissions;
- trustees' extension;
- computer crime;
- claims made basis of cover;
- retroactive cover;
definitions of key terms -
- wrongful act;
- how to submit a claim;
- why have a policy dedicated to the fund;
- more about the honesty index;
- calculation of required cover.