Professional Indemnity Insurance
The level of professional indemnity insurance to be taken out is expected to comply with the professional standards scheme of the national occupational association to which the trustee (or the trustee’s firm) belongs. If the trustee (or the trustee’s firm) does not belong to a national occupational association then a level of insurance equivalent with either of the schemes of Chartered Accountants Australia and New Zealand (CAANZ) or CPA Australia is considered adequate. Inspection-General Practice Statement 13 (IGPS13) refers.
There is no particular expectation about the level of fidelity insurance except that it is required to be adequate and appropriate for the trustee’s circumstances. The registered trustee is in the best position to assess what will be adequate and appropriate. However, in some cases they might find it helpful to engage external consultants, actuaries, brokers or advisers to undertake a risk assessment of their business and provide professional advice on the amount of cover they should obtain.