Executor Liability Insurance – all you need to know for protection in probate

The rise in contentious probate claims is well documented, particularly claims regarding a Will’s Validity, Financial Provision, and Estate Administration claims. With Will Validity claims, there is no limitation period to make a claim, whereas with Financial Provision claims, a claim should be made within 6 months from the date of the Grant of Probate/Letters of Administration. Last year, the Guardian reported a piece of research that suggested as many as 10,000 probate disputes were being raised each year, with the number being settled in court, also increasing. Prosperity’s Probate Indemnity Insurance policy helps to protect the Executor – and the estate in question – against the costs associated with defending such a claim. This, in turn, offers peace of mind for the Executor and all beneficiaries of the estate.

The solicitor’s role

As a Before the Event insurance, the probate solicitor’s role is especially important. In your client’s case notes specifically if there is a Will file, there can often be signs that a claim might be made. For example, complex familial setups or where there are estranged family members could be more likely to result in a dispute. In these cases, it might be sensible for you to put an Executor Liability Insurance policy in place. This will protect your client (and ensure prompt payment of your associated fees) in the case of a claim being raised.

The policy is only suitable for purchase for estates where there has been no express statement of intent to raise a claim. Therefore, getting ahead and putting the policy in place as early as possible in the probate process, is vital.

For firms, there is also an additional benefit of timely payment. Our probate insurance policies regularly pay out associated legal fees quicker than the estate in question, helping with cash flow and accelerating the payment process.

What does the policy cover?

Our Executor Liability Insurance covers the legal fees and other costs like mediation fees and court fees, associated with defending a claim against an estate. The policy covers claims made by a variety of entities, including third parties, charities, and constructive trust, and in certain cases protects against claims made after the estate has been distributed.

We also offer the option to defer payment for up to six months – a feature that we understand to be especially beneficial to clients.

Why Prosperity?

Prosperity works closely with its legal partners to assess what matters most to firms and individual solicitors; to provide competitive policies that are managed in a way that makes their work easier. Our policies are managed through an online portal, with admin taking minutes to complete before gaining fast access to you required policy. Yes, our policies give peace of mind to firms and their clients, but in many cases also enable you to continue acting in your client’s best interests.

If you’d like to learn more about our probate indemnity insurance, we’d be more than happy to have a chat. Give us a call on 0800 524 4235  or get in touch here for a confidential discussion.