Protect Your Client, Protect Your Practice
Get your client to us before the house is on fire
75% of Executor Liability Insurance applications are late and the estate is already in trouble. Legal professionals have been using our product for over 8 years – you know it works, so why wait?
Don’t leave yourself exposed to litigation while other lawyers are calling us for protection when they act as executors.
Protect your practice
ERAssure Executor Liability Insurance covers many executor activities that can result in an allegation of negligence during estate administration.
Don’t wait to advise your clients about insurance until the estate turns spicy.
What can our products do for you and your clients?
Executor Liability Insurance
The Executor Liability Insurance policy provides coverage to executors for damages arising out of a claim as a result of the executor’s error, omission or negligent act in the performance of, or failure to perform, an executor’s duties.
These damages can include:
- Defence costs
- Damages to correct the error or to make the estate whole
- Costs awarded against the Insured
- reasonable expenses
Executor liability insurance is available to Canadians when they start as an Executor.
The benefits of executor insurance seem clear – a client won’t have to put his or her own house on the line when acting as executor. The executor would also have some protection for legal costs incurred in defending a negligence claim by the beneficiaries which might not be eligible for reimbursement by the Estate.
ERAssure Product Details
Our products are recommended by professional lawyers and financial advisors who want to do more than the minimum when representing their clients.
At Need: Executor Liability Insurance
This is our original Property/Casualty errors and omission insurance product, Executor Liability Insurance. It’s sold to executors when they begin the role at the time of the testator’s death.
What does executor liability insurance cover?
- Coverage applies even before a formal claim is commenced.
- Damages include compensatory damages, but do not cover a reduction of executor’s compensation.
- The policy does not cover income or probate tax liability, but does cover certain defence costs in certain circumstances.
- Coverage requires probate of the Will, but still applies to multiple wills when the executors and beneficiaries are the same.
How much does it cost?
The cost of the policy depends on the size of the estate. For an estate of $1,000,000, the cost for a three year policy is approximately $2,000. Coverage extends to estates of any size, but certain limits of insurance may vary depending on the circumstances of the estate.
Who pays the premiums, the estate or the executor?
The issue of whether the premiums can be paid from the estate or are the responsibility of the executor personally is not clear. As an executor is generally entitled to indemnification for costs incurred in his duties, a strong argument can be made that a policy of insurance is an indemnification of his possible costs. In addition, there is likely a benefit to the beneficiaries. For example, the executor incurs expenses in successfully defending a claim for negligence brought by one of the beneficiaries. Without Executor’s Insurance, the executor would look to the estate to pay those expenses. If there is a policy of Executor’s Insurance in place, the insurance will cover those expenses. To date there has not been a judicial decision regarding this issue.
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Free Client Resources
Are your clients lost when it comes to their executor tasks?
We have a free step-by-step Executor Guide for Canadians and several other estate planning resources that you may find helpful:
- Official Executor Guide
- Executor Preparation Course
- Executor FAQ
- Executor Liability Insurance Application
- I’m the executor of a will – what now?
- What are my executor duties?
- What are joint executors?
- My kids are my executors – help!
- Who do I choose as my executor?
- Will Preparation Guide
- Inheritance Planning Guide