Trust Services Liability

Trust Services Liability protects against Losses resulting from Wrongful Acts while acting in the capacity as administrator, conservator, guardian, custodian or trustee in rendering or failing to render Trust Services.
 

Sample Policy
Sample Endorsement
Coverage Summary

Claims Examples
  • The trustee of a testamentary trust fails to obtain personal property from the executor of an estate as soon as the terms of the will and the probate law permit. The executor misappropriates the assets. The trustee is held liable to the beneficiaries for this loss due to the delay in obtaining possession of the trust property.
  • A trustee is instructed to purchase a particular security by the donor of a non-discretionary trust account. The trustee purchases the wrong security. The error is discovered after the market value of the security purchased by the trustee has dropped, while the market value of the intended security specifically requested by the donor has significantly increased. While the dollar amount of investment losses due to market fluctuation unrelated to any Wrongful Act is not covered, defense costs to defend the bank are covered.
Features
  • Available as a separate endorsement to the D&O Policy or as a separate limit of liability.
  • Losses include defense costs, judgments, settlements, and punitive and exemplary damages (where insurable by law).
  • Defense costs for allegations of fraud and violations of law are paid regardless of final adjudication.
  • The base Trust Services Liability policy does not contain any of the following exclusions:
    • Regulatory
    • Past Acts
    • Mechanical Malfunctions
    • Custody & Control

Applications
All States except NY  
NY version  
 

Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.