The PTL (Pension Trust Liability) insurance provides insurance cover for the persons entrusted with the administration, management or control of the pension plans. It is a combined D&O and professional liability insurance for pension funds.

The PTL policy consists of the following components:

  • Protection for claims against the pension fund or its founder company (professional liability)
  • Protection of the private assets of board members (D&O)
  • Protection of the pension fund or the founding company if they indemnify the organs (Side B of the D&O insurance)
  • Protection of the pension fund for criminal acts (fidelity) – as an optional component
  • Compensation in the case of justified claimss

The origins of PTL lie in the need to protect employees’ pension contributions from losses due to the insolvency of the company by separating the pension assets which are brought into legally independent entities. Consequently, with the legal separation, insurance cover should also separated as well. Although it is possible to integrate the D&O risk of the boards of trustees into the company D&O policy, the professional liability risk in these cases remains uninsured or must be borne by the pension fund itself. This is where PTL insurance offers added value.

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