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Coverage Question Series – Part 15
Post on July 6th, 2018
This is a continuing series in which we address policy coverage questions that we routinely discuss with you and your colleagues. The answers provided are based on the basic policy form, currently LPLP-1r; refer to your specific policy and any endorsements attached thereto that may change coverage or the answers provided.

I am the trustee of a family trust, am I covered?

No, not for work performed as the trustee. Coverage for “Claims” arising out of acts in which you are acting in a fiduciary capacity of a fund, trust or other investment in which a relative of any Insured under the policy has a beneficial interest are neither covered and are specifically excluded by the policy. In addition, your losses as a beneficiary or distributee of the trust or estate are also specifically excluded. This risk of fraud is too great for these types of claims.
As you should expect, these Q&A scenarios are based on simple hypotheticals. Coverage determinations for an actual claim are ultimately based on the unique facts, applicable law, and the Terms, Conditions, Limitations, Exclusions, and Endorsements of your policy.
Please contact me at [email protected] if you have any questions!
Carl Marsh, Esq.
Claims Counsel