Executor Insurance

The role of the executor is complex and can include the following responsibilities for example:

  • Valuing and disposing of real estate and business assets
  • Settling accounts and ensuring creditor obligations are met
  • Settling tax obligations and filings
  • Managing property and personal assets
  • Handling investments
  • Locating and identifying beneficiaries
  • Providing detailed financial accounting to the beneficiaries
  • Managing expectations of beneficiaries, and often, those providing guidance to them

While each estate may be unique in size and complexity, the executor duties are always challenging and the opportunity for error or perceived negligence is real. The fiduciary responsibilities are great, and beneficiary relationships and expectations can be unpredictable.

Therefore, there is insurance protection, offered by ERAssure, which may be of interest to you to support you through this period.

Who and What is Covered?

Executor insurance covers defense costs and legal liability arising out of actual or alleged negligence in the administration of the estate. Primary coverage is for the executor but the insurance contingently protects the estate assets and thus adds value for the beneficiaries as well (in the absence of insurance, estate assets may be liquidated to pay the costs of defense when the executor is sued for negligence). Coverage is available for estates of any size, with a current liability limit of $5 million.

How much? 

ERAssure premiums depend on the estimated value and complexity of the estate, type of assets, number and qualification of executors, and the amount of coverage. For a typical estate valued at less than $1 million, the approximate cost is less than $2,000 for a 3-year term.

Who pays?

The estate could cover the insurance premium. As with all estate expenses, the estate trustee can be indemnified for incurring the expense if found to be reasonable by the beneficiaries or as part of the passing of accounts.

Time limits?

An ERAssure policy must be ordered within 30 days of the date of testator’s death or the date of appointment of the executor.

We can help.


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