Protect yourself and safeguard your personal assets
If you are accused of an error, misjudgement or mismanagement in the performance of your duties as an SMSF Trustee, you could become personally liable for legal costs and compensation.
Trustee insurance allows you to safeguard your personal assets, providing the funds to defend your case and pay any damages should you be found to be at fault.
Whether you are setting up a new SMSF, or have had your fund for several years, the increasingly complex regulations surrounding SMSF management make it essential that you take measures to protect yourself.
Your actions as an SMSF Trustee can come under scrutiny in a number of ways:
Members of the SMSF may question your administration of the fund, alleging a breach of your duty to manage the fund's assets for their benefit. If you are found to have made a mistake or omission which has cost the fund money, you could be required to recompense the members for their loss.
Other Trustees could dispute your decisions or actions if they believe you have made a mistake in the performance of your duties, since they could be held jointly accountable for any errors in judgment or mishandling of fund assets.
The ATO pays close attention to the management of SMSFs. There are strict rules governing all aspects of fund administration, including the segregation of fund assets from the personal possessions of members; the limits on contributions by members; the types of investments which can be made by the fund; and the insurance of fund assets. Any suspected breach of the fund could lead to an audit, or even civil proceedings against the Trustees.
SMSF Trustee insurance offers you comprehensive protection for any claim made against you as a result of your position as Trustee, whether it is found to be false or accurate.
Talk to us today about an obligation-free quote for Trustees Insurance for your self-managed super fund.
Applications are handled completely online, and take only a few minutes to complete.