Pension issues have consistently made headlines over the past few years and continue to influence corporate activity. Existing and future legislation together with recent court judgements and Pension Ombudsman recommendations have reiterated the need for effective risk management in this field.
Of primary concern is the risk that individual pension trustees could find themselves personally liable from a range of allegations, putting their own assets in jeopardy. The liabilities that can flow from these duties attach not only whilst trustees serve, but also at the point where the scheme members make a claim – commonly on retirement or exit.
This creates very long-term (if not lifetime) exposure and structuring appropriate insurances can mitigate the burden on trustees. JLT’s pension liability experts advise our clients actively on the exposures and issues in this field, providing timely and appropriate guidance.
WHAT WE DO
Trustees are subject to strict scrutiny and accountability. As such, unlimited personal liability can be brought for: failure to fulfil statutory obligations, failure to comply with legal requirements, negligence, breach of duty, breach of trust, administrative errors, wrongful omission or misleading statements.
Whether the wrongful act is actual or alleged, the costs involved in investigation and defending the case can be huge, regardless of any damages awarded.
Pension trustee liability insurance provides external and independent protection against these allegations. It can cover the assets of individual trustees, the pension scheme itself and the employer running the scheme.
Above all it provides peace of mind so that trustees and employers have the confidence to perform their roles knowing that the relevant protection is in place. As one of the largest insurance broking houses in the world, JLT can achieve broad policy wordings covering your risk exposures.
OUR MANAGEMENT LIABILITY TEAM’S KEY STATS
Working with JLT you would receive advice from a pension trustee liability expert:
- sharing best practices and providing you with a better understanding of your risk exposure
- with a single-minded commitment to cost management and claims performance
- a practical problem solving approach, proven in resolving common issues
- who will build the service delivery around your business needs
- providing you the confidence and trust that you will always get the best results possible
- treating you as a partner at all times
- offering an integrated team that offers the depth of expertise, service and resource that your business needs.
We can achieve broad policy wording including (but not limited to) coverage for:
- Defence costs, legal representation expenses and judgement settlements
- Damages including distress awards and compensation
- Loss to the sponsoring employer or pension scheme
- Acts committed prior to the inception of the policy
- Public relations expenses
- Civil fines and penalties (where insurable)
- Court attendance and staff disruption costs
Furthermore the policy can be tailored to meet the specific needs of each individual client, taking into consideration:
- Number of schemes
- Defined benefit of defined contribution
- The funding/deficit position of a scheme
- Changes in pension legislation/regulation
- Fund performance
- Geographical exposure
- Loss history.