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 -
  • negligence;
  • wrongful act;
  • officer;
• how to submit a claim;
• why have a policy dedicated to the fund;
• more about the honesty index;
• calculation of required cover.