By Luke Dungworth, Financial Lines Broker, Champion Professional Risks

If your family trust holds significant assets, employs staff, or makes key financial decisions, Directors & Officers (D&O) insurance isn’t just a “nice to have” – it could be essential protection.

At Champion Professional Risks, we work with family trusts across the UK to arrange tailored D&O insurance policies that safeguard trustees and directors against personal liability. In this article, we explain why this cover matters, what it protects, and how to know if your trust should have it.

What is D&O Insurance — and how does it apply to Family Trusts?

Directors & Officers insurance provides cover for individuals who make decisions on behalf of an organisation — including trustees and directors acting for a family trust or trust-owned company.

If someone alleges that a trustee has mismanaged the trust’s affairs, acted negligently, or breached their fiduciary duties, D&O insurance helps cover the legal defence costs, settlements, and other liabilities. It’s there to protect personal assets — not just the trust itself.

Why a Family Trust might need D&O Insurance

While family trusts often feel private and secure, they can still face disputes, claims, or investigations that put trustees in the firing line. You may need D&O cover if:

Your trust:

• Owns a business, property portfolio, or other high-value assets
• Has external trustees or professional directors
• Makes complex investment decisions
• Employs staff or contracts services
• Has multiple beneficiaries with different interests

And you’re exposed to risks like:

• Allegations of mismanagement by beneficiaries
• Claims of breach of trust or conflicts of interest
• Regulatory investigations (e.g. tax or compliance issues)
• Legal action during family disputes over assets or decisions

In all of these cases, the trustees or directors can be held personally liable — even if they acted in good faith.

What Does D&O Insurance for Family Trusts Cover?

A tailored D&O policy for a family trust typically includes:

• Legal defence costs
• Settlements or damages from covered claims
• Regulatory investigation costs
• Protection against alleged errors, omissions, or misstatements
• Important: It covers individuals, not the trust itself — that’s a common misconception.

Real-World Examples of D&O Claims Involving Family Trusts

• A beneficiary sues a trustee, claiming poor investment decisions led to financial losses.
• A property-owning trust faces a health and safety investigation after a tenant injury — and trustees are questioned over compliance failures.
• A family dispute escalates, with accusations that one trustee has favoured certain beneficiaries over others.
• An external trustee resigns, only to face legal action for alleged mismanagement years later.

Is Your Trust Covered?

D&O insurance can be surprisingly affordable, especially compared to the potential legal costs of a dispute. But it’s vital to get a policy that reflects the specific structure, assets, and risks of your trust.

At Champion Professional Risks, we specialise in helping UK family trusts navigate the insurance landscape. We work with leading insurers to secure cover that fits – whether you’re managing a trading business, a property portfolio, or a generational wealth plan.

Speak to a Specialist
If you’re a trustee, director, or adviser to a family trust and want peace of mind against legal and financial exposure, we’re here to help.

Call us on 03330 430 430
Email: Profin@ChampionInsure.co.uk
Visit: www.ChampionInsure.co.uk

Protect the people behind your trust — not just the assets within it.