Miscellaneous Professional Liability Insurance for Trustees

1 Miscellaneous Professional Liability Insurance for Trustees Individuals who serve as Trustees may Trustees ' Liability coverage is afforded face substantial personal Liability . to natural persons in their individual Trustees are often called upon during capacities as Trustees . Chubb's tumultuous times to handle challenging Miscellaneous Professional Liability accounting, financial and other Insurance for Trustees coverage is tailored managerial responsibilities. Few have to the unique exposures of Trustees prior experience or training in trustee overseeing a variety of trusts, including: Professional services, yet they are tasked with making decisions in the best interest Testamentary trusts of the beneficiaries, in accordance with Living trusts (when the grantor is not the trust and in compliance with the law. the trustee). Liquidating trusts This can lead to any number of Bankruptcy trusts contentious situations. Allegations against Receiverships Trustees can take many forms, including Claims/ Insurance trusts mismanagement of trust assets, failure to diversify assets, accounting errors, unfair or improper distributions, failure Claims Scenarios to follow terms of the trust agreement and conflict of interest.

2 Trustees may be A suit was filed against the Trustees of a sued by beneficiaries, creditors, charities testamentary trust alleging that the current or government agencies acting on behalf Trustees failed to review and address the of beneficiaries. And, unlike employees prior Trustees ' actions. Brought by one of a Professional services organization, beneficiary on behalf of herself and the Trustees are not afforded protection by other beneficiaries, the suit alleged breach an entity actions for breach of trust are of fiduciary duty, and that the distributions brought against the trustee personally. were not fair, not in accordance with the trust, and unequal. The case was settled with a monetary payment and amendments to the trust as to how future distributions were to be made. The founder of a large private company Trustee is the Named Insured created a testamentary trust for his wife Definition of Professional Services In The News: and children. The trust assets consisted addresses the exposures unique to Allegations Against Trustees only of the company's stock.

3 The intent Trustees of the trust was to hold the stock within Final adjudication and non-imputation Two Trustees are defendants in the family, and the terms of the trust of the conduct exclusions litigation brought by the grantor relieved the Trustees of a duty to diversify. Vicarious Liability coverage for the seeking to remove certain assets from The beneficiaries alleged breach of duty selection of outside Professional the trusts he created for the benefit against the Trustees for failing to diversify services providers of his now estranged heirs. At issue is the assets of the trust. As a result of the Coverage for Trustees ' employees in whether the grantors proposed asset company's bankruptcy, the trust lost their provision of services for the trust swap is fair and equal. millions in value. A lawyer was suspended from practicing law for 30 days and placed The assets of a trust were managed by an on 3 year probation following litigation investment advisor. Both the investment The Chubb Advantage by the beneficiaries of an estate trust advisor and the trustee were sued for mishandling trust assets.

4 By the beneficiaries when the trusts' Chubb has earned its leadership position Trustees for an automobile collection assets declined substantially because of in Professional Liability Insurance as a charitable trust have been sued for decisions made by the trust's investment result of our: mismanagement of trust assets, advisor. The trustee was sued for failure including paying themselves excess fees to properly select and supervise the Financial stability: Chubb receives and filing inaccurate tax forms with the investment advisor and for failure to consistently high ratings for financial Internal Revenue Service. ensure that the assets were invested in strength from Best, Moody's accordance with the trust's objectives. and Standard & Poor's, the leading independent analysts for the A deceased person's will appointed a Insurance industry. trustee to oversee the trust created by Reputation for paying claims and Contact Us the deceased's estate, which included superior service: Our reputation three properties.

5 The trustee liquidated for expert, fair claims handling is the estate and distributed the proceeds renowned in the industry. For more information on MPL Insurance in accordance with the will and trust. The Broad coverage: Our MPL Insurance for Trustees , contact your local beneficiaries brought suit, alleging that products offer some of the broadest agent, or visit the trustee was negligent in obtaining coverage available in the marketplace. professionalliability. a current, accurate assessment of the We provide this coverage on a monoline property values, resulting in a substantial policy form or as part of a suite of loss to the estate. specialty Liability coverages. Coverage Features The following Miscellaneous Professional Liability Insurance features are available to Trustees : No requirement that services are performed for a fee; Trustees are not always compensated, and compensation is not required for coverage The claim scenarios described here are hypothetical and are offered solely to illustrate the types of situations that may result in claims.

6 These scenarios are not based on actual claims and should not be compared to an actual claim. The precise coverage afforded by any insurer is subject to the terms and conditions of the policies as issued. Whether or to what extent a particular loss is covered depends on the facts and circumstances of the loss, the terms and conditions of the policy as issued and applicable law. Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing Insurance and related services. For a list of these subsidiaries, please visit our website Product highlights are summaries only. Please see the actual policy for terms and conditions. Products may not be available in all locations, and remain subject to Chubb's underwriting criteria. Surplus lines Insurance is sold only through licensed surplus lines producers. Copyright 2016 Form 14-01-1217 (Rev. 11/16).