The latest news from Rokstone;
Rokstone, the International Speciality (Re)Insurance MGA and part of the Aventum Group, has unveiled two new extensions to its specialist Family Trustee Liability product that protects against the risks associated with non-professional trusteeship. The two extensions plug the gap in these policies which currently expose trust assets to financial loss.
Rokstone’s Exoneration and Beddoe Costs extensions now ensure that Trusts’ assets are protected either where the trustee’s own personal liability has already been protected under the trust’s deeds and/or where assets become exposed in pursuing a Beddoe order (a legal approval that trustees can request from a court to condone a potential contentious course of action, allowing the court to review the actions beforehand).
There are over 600,000 family trusts and estates in the UK and only a small percentage of these currently benefit from Family Trustee Liability cover. This represents a significant need and market opportunity for brokers – particularly those specialising in D&O, PI or rural estates which are often closely associated with Family Trustee Liability cover.
Jimmy Heaton, Head of D&O at Rokstone commented: “The responsibilities and duties carried out by non-professional family trustees are many, varied and complex; it is therefore vital that they have the protection and peace of mind to carry them out to the best of their ability. Similarly, the trust’s assets are often exposed to potential trustee negligence where rights of recourse against a trustee may be “blocked” by an exoneration clause in the trust’s deeds. The policy carries some truly valuable coverage points, including reimbursement of the actual trust fund where trustees are personally exonerated from liability. This critical financial risk transfer mechanism actually helps the trustees to safeguard trust assets more effectively, and ensures both trust and trustee benefit from the protection offered. The enhancement of our Family Trustee Liability product is a great asset to our coverage suite, ensuring we inspire confidence amongst brokers witnessing increased client demand for protection against niche specialty risks such as this.”
Trustees stewarding assets held in family trusts inevitably attract a degree of risk from multiple sources. Where a trust’s deeds contain a comprehensive exoneration clause, the trust’s assets also carry a significant portion of the risks, often uninsured. Rokstone’s enhanced coverage specifically addresses this area of exposure, bringing peace of mind to trustees and balance sheet protection to the trust itself.
Rokstone’s Family Trust Liability product is backed by A-rated Lloyd’s capacity and is exclusively available via brokers. It protects against the financial costs arising from the most common risks trustees face including:
- allegations of breaches of trust and self-dealing
- family disputes (beneficiary wishes vs trustee actions)
- allegations of trust asset mismanagement
- managing complex tax and asset reporting requirements
Rokstone is one of the world’s largest MGAs, with offices in the UK, Europe, USA, Asia, Africa and the Middle East. It is a leading specialist MGA serving the needs of international (re)insurance brokers in the specialty lines business. It currently underwrites more than USD 1bn GWP in several specialty lines including Property, Power Generation, Marine, Aviation, Warranty, Credit & Surety Treaty, Agriculture, Construction & Engineering, A&H and Liability.
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