Can a D&O policy be used to cover trustees?

There are three departments in Camargue that write trusts:

  • Pension fund trustees (PFT) department.
    • The trusts written in this area are those typically governed by the Trust Property Control Act 57 of 1998.
    • Medical schemes trusts and pension funds trusts are the preferred types of trusts written in this area.
    • Charitable trusts and employee benefit trusts are sometimes written but only as accommodation business.
    • In order to write this business the trust would need to be legally constituted and a trust title deed would need to be in place. 
  • D&O department.
    • The trusts written in this area are those typically governed by the Companies Act 71 of 2008 or by the Sectional Titles Schemes Management Act 8 of 2011.
    • Technically, the Companies Act does not refer to trusts but instead it provides for other similar structures such as ‘not for profit’ companies. These are sometimes referred to as section 21 companies (a reference from the old Companies Act).
    • The trustees of organisations such as sectional titles, home owners associations, schools etc. can also be covered under a D&O policy.
  • FiPi division
    • Where a trust has been created as an investment vehicle, it would be written by Camargue’s financial institutions division.
  • Camargue does not write
    • Family trusts
    • Funds held in trust for others (e.g. a lawyer holding money in trust)
Subject: 
Directors and Officers Liability