What is Winding-Up Insurance?

Our Winding-Up Insurance Policy provides cover in the event that a pension scheme is winding-up, usually in the event of a wider scheme merger or buy-out. It can also provide cover for events such as the retirement of a Trustee Board following the appointment of a Sole Professional Trustee, as the former Trustees are still liable for their actions post-retirement. This cover is also commonly referred to as Run-off Insurance, PTL Run-off, Discontinuance Insurance, Overlooked Beneficiaries Insurance or Missing Beneficiaries Insurance.

Why do you need Winding-Up Insurance?

Pension Trustees remain liable for their past actions even after their retirement or the scheme has been wound up. If the pension scheme no longer exists, there are no assets to call upon in the event of a claim, meaning the Trustees could be exposed financially, so it is important to have insurance in place to provide peace of mind should a claim be made which involves a former Trustees actions. In the absence of insurance, ex trustees would have to rely on the willingness and ability of a Sponsor to honour an indemnity and being there and having the willingness and financial ability to do so, which may prove problematic.

Who can the Winding-Up Insurance Policy cover?

  • Pension Trustees (including Retired Trustees and Former Trustees)
  • Professional Trustees
  • Employees
  • The Sponsoring Employer Company
  • A Corporate Trustee Company entity
  • The Pension Scheme itself
  • Lawful spouses, partners, estates, and heirs of trustees
  • Missing Beneficiaries

What can the Winding-Up Insurance Policy cover?

  • Overlooked and Missing Beneficiaries
  • Investigation Expenses
  • Defence Costs to provide legal and other support to respond to a claim
  • Public Relation Expenses
  • Civil Fines and Penalties
  • Emergency Costs
  • Extradition Proceedings
  • Fidelity
  • Loss of Documents
  • Prosecution Costs
  • Third Party Service Provider Pursuit
  • Contribution Notices
  • Regulatory Crisis Response
  • Court Attendance and Staff Disruption
  • Mitigation or Prevention Costs


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