PTL (Pension Trustee Liability) Insurance

Liability insurance for board members and fund managers of occupational benefits institutions

Employee representatives of occupational benefit institutions are liable towards recipients with their private assets for any breaches of duty.  This is not a sensational headline - it is simple fact.  The liability rules are set out in Article 52 BVG/LPP, BVV2/OPP2 and in contract law (reading recommended).  Members of a foundation board cannot invoke ignorance of the law, for example, as an excuse and are therefore subject to very strict liability rules.  However, there are ways to protect oneself.

Individual insurance cover for persons responsible for your occupational benefits institution

The recommended PTL concept offers the persons in charge of your occupational benefits institution the necessary protection against financial losses arising from liability claims for breach of duty in the scope of their activities as board members or fund managers.

By determining the specific risks to which your occupational benefit institution and its management are exposed, we support you in developing and implementing a suitable insurance concept.  The concept includes risk-reduction recommendations, decision-making aids in securing the best possible PTL insurance, and practical claims handling guidance.

Supplemental cover for outgoing board members

Once board members step down and leave the occupational benefits institution, they lose all influence over the terms and conditions of insurance and the quality of the PTL coverage. Parts of the insurance cover may be cancelled or insured sums reduced.

Nor is it certain that the insurance will be extended beyond the originally agreed term; moreover, claims may have been made in the meantime, exhausting the original insured sum.

As a result, board members may no longer be adequately covered against a claim.

Aon seeks to ensure that outgoing board members have the benefit of the broadest possible coverage.

Aon – standard-setting competence

Aon has specialised in developing PTL insurance and advisory services for clients at better-than-average market conditions for over 20 years.  In recent years, we have been involved in numerous large market placements.

Talk to us. We would be pleased to advise you on the many risk-coverage options offered by PTL insurance.