Fiduciary Liability Insurance protects plan fiduciaries from damages and defense costs resulting from allegations of mismanagement of employee benefit, pension and retirement programs. The most common claims allege ERISA violations, careless plan management, and failure to monitor performance of plan investments and administrators.
Benefits of Insuring
Provides a layer of protection for the personal assets of plan fiduciaries
Protects the plan from loss of assets resulting in a breach of fiduciary responsibility
Indemnification for the sponsor or fiduciary as a result of a groundless or real suit
Security of top rate carriers who specialize in Fiduciary coverage
Coverage Features of the Fiduciary Liability Insurance
Duty to Defend
Duty to Defend Policy Form
Includes negligent acts and errors and omissions in the administration of employee benefits
Automatic coverage for newly acquired plans
Prior Acts coverage (subject to underwriting)
Coverage for civil penalties under Section 502(1) and 502(i) of ERISA
