Trustee Errors and Omissions Policy Clause Samples
The Trustee Errors and Omissions Policy clause requires the trustee to maintain insurance coverage that protects against losses resulting from mistakes or negligence in the performance of their duties. This policy typically covers legal costs, settlements, or damages arising from claims that the trustee failed to properly administer the trust or made errors in judgment. By mandating such insurance, the clause ensures that beneficiaries and the trust itself are financially protected from the consequences of trustee errors, thereby allocating risk and promoting confidence in the trustee's management.
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Trustee Errors and Omissions Policy. The Trustee shall maintain, at all times and at its own expense, a Trustee Errors and Omissions Policy, which policy shall have such terms and coverage amounts as are comparable to those of errors and omissions policies maintained by trustees generally. The Trustee Errors and Omissions Policy shall insure the Trustee, its successors and assigns, against any losses resulting from negligence, errors or omissions on the part of officers, employees or other persons acting on behalf of the Trustee in the performance of its duties as Trustee pursuant to this Agreement. The Trustee shall maintain in effect the Trustee Errors and Omissions Policy at all times and the Trustee Errors and Omissions Policy may not be canceled, permitted to lapse or otherwise terminated without thirty Business Days' prior written notice by registered mail to the Master Servicer and the Depositor.