A trustee legally holds assets for the benefit of another person, the beneficiary, which makes them vulnerable to lawsuits.
A guardian is a person appointed by the court to make healthcare and other mostly non-monetary decisions for someone who cannot make these types of decisions because of an injury, illness, or disability.
A conservator is a person appointed by the court to take care of someone's finances when he or she cannot make these types of decisions because of an illness, injury, or disability.
Trustee/Guardianship Liability Insurance helps protect against claims resulting from a 'wrongful act' or an 'error or omission' while acting in these capacities.
Claims can be brought on by beneficiaries, creditors, charities, government agencies or anyone acting on behalf of the beneficiary. Allegations against trustees can take many forms, including mishandling of trust assets, bad investment decisions, accounting errors, unfair or improper distributions, failure to follow terms of the trust agreement and conflict of interest.
Without the proper coverage or limits, you can be left personally liable for any litigation costs, settlements or judgments, regardless of fault.