Business insurance
Protect the people who protect the fund.
Cover trustees' personal liability for the fund-management decisions they're trusted to make.
- Breach of fiduciary duty
- Legal defence costs
- Personal-asset protection
Pension fund trustees' liability insurance protects the trustees of a retirement or pension fund from personal liability for decisions made in managing the fund. Trustees carry a serious fiduciary duty under the Pension Funds Act — and members, beneficiaries or the regulator can hold them personally accountable.
Ample arranges trustees' liability cover that pays the legal costs and settlements arising from claims against fund trustees, so serving on a board doesn't put personal assets at risk.
What Pension Fund Trustees Liability covers
Breach of fiduciary duty
Claims that trustees failed in their duty to the fund and its members.
Legal defence costs
The cost of defending claims and investigations against trustees.
Personal-asset protection
Shields individual trustees' own homes and savings.
Maladministration claims
Allegations of errors, omissions or poor fund administration.
Regulatory inquiries
Costs of responding to the FSCA and Pension Funds Adjudicator.
Former & incoming trustees
Cover for past and newly appointed trustees, within terms.
Who pension fund trustees liability is for
- Trustees of pension and provident funds
- Employer-appointed and member-elected trustees
- Principal officers of retirement funds
- Boards of umbrella and standalone funds
Pension Fund Trustees Liability FAQs
Can pension fund trustees really be sued personally?
Yes. Under the Pension Funds Act trustees have a fiduciary duty, and members, beneficiaries or the regulator can pursue them personally for breaches or maladministration — putting their own assets at risk without cover.
Isn't the fund itself liable?
The fund may indemnify trustees in some cases, but not always — for example where there's an allegation of breach of duty. Trustees' liability cover protects the individuals directly.
Who should pay for this cover?
It's typically arranged for the board and funded by the fund or employer as part of good governance. It's increasingly expected for anyone serving as a trustee.
Does it cover regulatory investigations?
Yes — cover generally includes the costs of responding to the FSCA and the Pension Funds Adjudicator, not only formal legal claims.
This page is general information, not financial advice. Cover varies by policy and provider — your dedicated Ample broker tailors it to your needs.
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- Email usinfo@ampleinsurance.co.za
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