Trustees Liability Insurance NZ

What is Trustees Liability Insurance?

Trustees liability insurance protects trustees personally against claims arising from their duties and responsibilities in managing a trust or superannuation fund. Whether you manage a Self-Managed Superannuation Fund (SMSF), charitable trust, or family trust, this insurance provides essential protection for your personal assets.

Trustees have significant fiduciary duties and can be held personally liable for losses arising from breach of trust, poor investment decisions, or failure to comply with trust deeds and legislation. This insurance covers legal defence costs and any damages awarded.

What Does It Cover?

• Breach of trust claims
• Investment loss claims
• Failure to act in best interests
• Legal defence costs
• Investigation and inquiry costs
• Regulatory compliance issues
• Fiduciary liability

Who Needs Trustees Liability?

Trustees liability insurance is essential for anyone acting as a trustee:

• • SMSF trustees (self-managed superannuation funds)
• • Charitable trust trustees
• • Family trust trustees
• • Superannuation fund trustees
• • Club and society trustees
• • Trust deed administrators

Typical Costs

Trustees liability insurance costs vary based on the type and size of the trust. Typical costs start from:

• • SMSF: From $500/year
• • Small family trust: From $600/year
• • Charitable trust: From $800/year
• • Larger funds: From $1,200/year