Misappropriation of trust funds (MTF) is another area where law firms may have an exposure and thus run the risk of loss. As the name suggests, this cover protects the firm from theft/misappropriation of Trust fund monies by directors, partners or employees of a legal practice from their trust accounts. Shackleton Risk has structured this line of cover as a combined Professional Indemnity, Fidelity Guarantee and Misappropriation of Trust Fund Insurance policy, and as a result of this, are in a position to offer rates that will justify your capital outlay.
MTF insurance is not part of the cover attorneys receive from the Attorneys Insurance Indemnity Fund.
It is of paramount importance that legal practitioners protect their firms against the ever present and increasing risk pertaining to the misappropriation of trust funds. Although some practitioners may argue that the risk is slim, the facts do not lie and the Law Society of South Africa deals with numerous cases each year and the figures run into the tens of millions.
Shackleton Risks product is unique in that it allows law firms to be covered in respect of all employees, specific employees, or specific job functions within the firm. This option makes the cost of the cover more appropriate and affordable.
Should you be interested in Misappropriation of Trust Funds cover, please do not hesitate to contact Gareth Myer on 011-784 5373 or contact us.