Chubb launches liability policy for pension trustees

by Gill Montia

Story link: Chubb launches liability policy for pension trustees

Chubb Insurance has launched a new Pensions Liability Insurance, which aims to provide peace of mind for pension trustees.

The firm says it is responding to today’s uncertain economic environment, which has increased the risk trustees face when they are already dealing with more demanding obligations.

According to Chubb, to fulfil their responsibilities trustees now need to be familiar with a very large amount of documentation, law and best practice.

The firm’s UK underwriting manager for executive protection, Nigel Pearson, explains: “The Pensions Regulator can issue a contribution notice to the trustees and managers of a scheme as well as the employer, if it believes they were party to an act or deliberate failure to act which results in the under-funding of a scheme”.

The insurer says the new policy is designed with risks of this kind in mind; it provides a broad definition of insured persons plus cover for contribution notices, missing beneficiary claims and stakeholder pension scheme obligations.

The policy also covers compensation for court attendance and staff disruption costs.