Protection for trustees

Following the implementation of the Trustee Act 2000 in February, Stuart Alexander Insurance and Risk Management, Fund Protection Ltd and AIG Europe have launched fund protection insurance to protect trustees and their funds.

The new Act highlights the duty of care required of trustees and also confers wider powers to trustees in relation to investments, the acquisition of land, delegation of authority and remuneration. Fund protection insurance provides defence cover for a wide range of actual or alleged wrongful acts and safeguards the beneficiaries of the trust who may find they have no redress against trustees because of an exoneration clause.

Typical trustees' exposures include claims for breach of fiduciary duty, negligence, maladministration, errors or omissions and wrongful exercise of powers.

Further information is available from Peter Collins, special projects director, Stuart Alexander Insurance and Risk Management, 020 7335 1615