Some Practitioners may hold a Trusteeship or appointment as a Director &   Officer of Clients’ Trusts or Companies at some point in time.

Most Professional Indemnity Policies restrict cover to legal advice given in those capacities, and do not necessarily respond to other Losses arising from claims or commercial risks, when acting as a Trustee or a Director or Officer

The Justitia Professional Indemnity Policy has for some years included wider indemnity than most other policies for Directors or Partners and Employees who hold such appointments on behalf of a practice.

The extent of the coverage is still, however, limited to the “advice or services” as performed by the Director or Partner or Employee concerned.

In addition, the terms and conditions of a Professional Indemnity Policy are quite different from especially tailored Trustees Liability or Directors’ & Officers’ Liability Policies, and do contain certain restrictions that are inherent in a Professional Indemnity Policy.

For Example: there are the normal exclusions for insured versus insured claims, employer versus employee claims and liability for incurring trading debts.

A Professional Indemnity Insurance Policy also does not respond to certain types of judgments imposed by the courts that do not constitute a “civil liability” as such.

The Salient Features of the Extended Trustees, Directors & Officers Liability covers:

They are aimed at picking up the “Residual Commercial Risks” that may fall outside the scope of a Professional Indemnity Policy as “difference in conditions” contracts to augment the Professional Indemnity Cover.

They are designed to protect the practice representatives who hold Trusteeships or Directors or Officers appointments on behalf of Clients against loss arising from claims alleging “wrongful acts”, as defined in the policies, in the management of the affairs of the Trust or Company by any of the Trustees or Directors or Officers.

A “wrongful act”, in general terms, means any actual or alleged breach of duty or trust, neglect, error, misstatement, misleading statement, omission or other act wrongfully committed or attempted by the body of Trustees or Directors or Officers.

They are wide forms of essential “backup” protection for Members who accept such appointments. Members are urged to give serious consideration to them.

The Extended Liability Covers are not designed for Corporate Trusteeships or to apply to any appointments to Public Companies.

In such circumstances it is recommended Members should seek advice from the Justitia Insurance Consultants in this regard.

- Refer to Indemnity Insurance Proposal Form
              (download: iproposal.doc 107kb)