When you act as a trustee, you assume many responsibilities and legal obligations. You also expose yourself to significant potential liabilities - something many trustees don’t fully appreciate.
Trustee best practices: navigating complex responsibilities with confidence
Accepting the role of a trustee brings significant legal responsibilities and often underestimated liabilities. You must act in the beneficiaries' best interests, adhering strictly to the law. However, juggling duties to multiple parties can lead to allegations of wrongful acts or breaches of trust, even for experienced trustees. This exposes you to unlimited personal liability. The complexity of the role demands vigilance, as perceived mismanagement or deviations from trust agreements can trigger claims. Recognising these potential risks is a vital step in responsible trusteeship.
Understanding trustee liability
Claims against trustees can stem from various sources, including beneficiaries, creditors, and fellow trustees. These claims may involve mismanagement, accounting errors, or conflicts of interest. Insurance offers protection against such allegations. Partnering with a risk expert ensures comprehensive coverage and support.

Who does our product cover?
Family Trustees - as opposed to Charity Trustees regulated by the Charity Commission
Lay Trustees who are not appointed to perform a professional service
Trustees whose organisations do not cover their trustee responsibilities
Structures such as Private Trust Companies and Companies Limited by Guarantee
Among the types of trust we cover are:
Family Trusts intentionally created to generate income for beneficiaries and/or to accumulate additional wealth within the trust
Bare Trusts, Mixed Trusts, Discretionary Trusts, Accumulation and Maintenance Trusts, Interest in Possession Trusts etc.
Trusts where land, buildings, investments, money, art, antiques and/or other valuables or assets are held in trust
Our Trustee Liability Insurance product offers you comprehensive cover against the risks you face as a trustee. This includes:
Trustee Liability Insurance FAQs
What is Trustee Liability?
Trustee liability refers to the legal and financial responsibility trustees hold when managing and overseeing trust assets. Trustees are obligated to act in the best interests of the beneficiaries and adhere to the terms of the trust. However, they can face claims for wrongful acts, breaches of trust, or negligence, potentially putting their personal assets at risk.
Why is Trustee Liability Insurance important?
Trustee liability insurance is crucial for protecting trustees from personal financial exposure in the event of claims brought by beneficiaries, fellow trustees, or creditors. Allegations of wrongful acts—such as mismanagement of trust assets, accounting errors, or breaches of duty—can lead to significant legal and financial consequences. Insurance provides peace of mind, covering legal defence costs, settlements, and damages, while ensuring trustees can fulfil their duties confidently.
What types of claims are covered?
Our Trustee Liability Insurance is designed to address a wide range of claims, including:
Mismanagement of trust assets
Breaches of fiduciary duty or trust
Allegations of improper distributions
Conflicts of interest
Failure to diversify trust assets or adhere to trust agreements
Accounting or administrative errors
The coverage extends to defence costs, settlements, and judgments arising from these claims.
Who is eligible for Lay Trustee Liability Insurance?
Our Lay Trustee Liability Insurance is ideal for:
Family Trustees, especially those serving informal family trusts
Lay Trustees acting in a personal, non-professional capacity
Trustees of organisations that don’t provide trustee liability coverage
Directors and officers of Private Trust Companies or similar family office structures
Trustee Liability Insurance Team
To find out more about the risks you face as a trustee, and how our product protects you, contact:
Charles Hamilton-Stubber
Senior Vice President
charles.hamilton-stubber@lockton.com
+44 207 933 2962
Andrew Young
Assistant Vice President Global Professional & Financial Risk
andrew.young@lockton.com
+44 7425 616561