Comprehensive liability insurance to protect SMSF trustees launched

A comprehensive insurance package has just been launched that can help protect SMSF trustees from the unprecedented personal liability risks they now face with changing compliance and regulatory demands.

Numerisk Pty Limited has launched its SMSF Defender Liability Insurance, the only comprehensive protection package specifically designed to safeguard SMSF trustees from the financial consequences of mistakes, disputes, regulatory actions and cyber fraud.

Richard Silberman, CEO at Numerisk, said with 700,000 SMSFs managing more than $1 trillion in retirement savings, a single administrative error, regulatory breach, or cyber scam can jeopardise decades of retirement planning and expose trustees to significant financial loss.

“SMSF trustees take on substantial responsibility when managing their own superannuation, often without fully understanding the personal liability risks involved,” he said.

“The failures of the Shield Master Trust and First Guardian products in particular serve as stark reminders of market exposures for trustees and funds who also happen to be mums and dads and everyday people – something all industry stakeholders should keep front of mind.”

Silberman said the SMSF Defender Liability Insurance addresses the full spectrum of risks facing SMSF trustees through four key coverage areas such as personal liability and fund reimbursement which includes coverage for legal defence costs when trustees are accused of wrongful acts, including errors, omissions, or breach of duty.

It also includes fines and penalties cover with protection against regulatory penalties imposed by the ATO for unintentional breaches of SMSF rules as well as tax audit and investigation cover with reimbursement of professional accounting fees required to respond to ATO audits and investigations.

Additionally, it has cover for crime and cyber fraud providing financial protection against increasingly sophisticated scams, including cyber fraud, social engineering attacks, and theft.

“The cyber fraud protection is particularly timely, as SMSF-targeted scams have surged in recent years. The policy covers losses from hacked email instructions, fraudulent transfers, and impersonation scams,” Silberman said.

He continued that unlike retail and industry super funds, SMSF trustees bear personal responsibility for fund management and compliance.

“Previous insurance options have been limited, fragmented or cost prohibitive, leaving many trustees exposed to risks that could devastate their retirement savings,” he added.

“This isn’t just about protecting the fund, it’s about protecting the individuals who manage it. Trustees can face personal liability even when they’ve engaged professional advisers. SMSF Defender ensures they’re not left financially vulnerable.”

The policy extends protection to SMSF trustees, directors of corporate trustees, and under specific conditions, spouses and legal representatives. The fund itself is also covered ensuring its assets have protection from a range of risks.

Keeli Cambourne

February 5 2026

smsfadviser.com