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Pension trustees' liability run-off insurance

A specialised insurance solution designed to protect pension trustees from personal liability risks and claims from overlooked beneficiaries following the wind-up or buy-out of a pension scheme.
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31/10/2025

Who is this for?

This insurance is intended for pension trustees, including directors of corporate trustees, who may face potential litigation after a pension scheme has been wound up or transferred to a bulk annuity provider.

Why is this insurance necessary?

Trustees retain personal liability for decisions and actions taken during their tenure, even after the scheme has been wound up. Key areas of exposure include:

  • Liability arising from the management of the pension fund and decisions related to buy-outs, including the selection of bulk annuity providers.
  • Claims from beneficiaries who may have been inadvertently excluded or incorrectly accounted for in the bulk annuity insurer’s records, potentially leaving trustees responsible for their entitlements.

Are your existing indemnities or insurance arrangements adequate?

While the sponsoring employer or pension plan may provide indemnities to trustees, these often cease upon the wind-up of the scheme. Furthermore, the indemnifying entity may no longer exist or possess sufficient assets when a claim arises. Following a buy-in, the transfer of most plan assets typically renders such indemnities ineffective.

Existing pension trustee or fiduciary liability policies may also fall short due to:

  • Coverage being provided on an annual basis, with no assurance of renewal.
  • Shared coverage limits across multiple trustees and the sponsoring employer, potentially diluting protection.
  • The sponsoring employer holding the policy, limiting trustees’ control or influence over its terms.
  • Limited or no coverage for claims arising from overlooked beneficiaries.

How we can help

Marsh has collaborated with insurers to develop tailored policies that address these specific needs:

  • Pre-wind-up pension trustee liability insurance: Provides cover during the period leading up to the completion of the wind-up.
  • Residual pension trustee liability insurance: Offers run-off cover for trustees against claims arising after the wind-up has been completed.
  • Overlooked beneficiaries insurance: Provides protection against claims from beneficiaries who may have been inadvertently excluded.
  • Bespoke solutions: Specialist insurers can offer extended policy periods and cover for specific risks. Solutions may also be available to protect the sponsoring employer, its employees, or directors.

To learn more about how Marsh can help protect you from pension trustees’ liability, please download our flyer or contact our team to discuss your requirements.

For more information on Marsh’s pension trustees' liability run-off insurance

Download the flyer

Meet our people

Zelda Pitman

Zelda Pitman

Senior Client Executive, Management Liability

  • United Kingdom

Lauren Wood

Lauren Wood

Client Executive, Management Liability

  • United Kingdom