Primary scope of coverage

Broad definition of "insured" includes debtor in possession under U.S. bankruptcy law (or an equivalent status under the law of any other country); its benefit plans; and its fiduciaries

Insurance for 502(i) and 502(l) civil penalties

Broad definition of "employee benefit plan" expressly includes:
  • Any employment benefit plan, pension benefit plan, or welfare benefit plan defined in ERISA, as well as any other plan or program not subject to ERISA that is sponsored solely by our insured for the benefit of its employees
  • Plans that are actively being developed or proposed
  • Automatic coverage for new benefit plans added by the insured, without prior notification of the new plan, with notice to insurer within 90 days

Broad definition of "wrongful act" includes allegations of breach of fiduciary duty and negligent administration

Broad definition of "administration" includes giving counsel to employees, handling records, affecting enrollment; and terminating or canceling employees, under any plan

Broad definition of "insured person" includes full-time, part-time, seasonal, and temporary employees

Broad definition of "claim" includes
  • written demands for monetary damages, nonmonetary or injunctive relief
  • criminal proceedings
  • formal administrative or regulatory proceedings
  • a fact-finding investigation by the DOL, U.S. Pension Benefit Guarantee Corporation

Voluntary settlement fees: Nationwide will pay for defense and any fines up to a predetermined sublimit of the maximum aggregate

No pollution exclusion

Punitive and exemplary damages are not excluded, where insurable by law

Duty to Defend Coverage
  • Nationwide will appoint highly qualified and experienced ERISA counsel to defend covered claims, sparing our insured the burden of selecting appropriate attorneys and managing the defense

Automatic coverage for claims made against an insured person's spouse or domestic partner for wrongful acts of the insured person

Coverage for acquisitions will automatically insure acquired organizations without notice if the new subsidiary's total assets do not exceed 25% of our insured's total assets

No hammer clause

"Claims made" coverage

Extended reporting period applies whether our insured cancels the policy or Nationwide chooses to nonrenew coverage; the insured is entitled to purchase an extension of coverage for subsequent claims alleging wrongdoing prior to the cancellation or nonrenewal.


Excess scope of coverage

Follows primary policy, but no broader than the most restrictive underlying insurance policy

No exclusions

Policy will not drop down due to exhaustion of sublimit, but policy will recognize payment of sublimit

Follows the underlying policy, designated as "Followed Policy" for key terms such as:
  • Cancellation
  • Discovery period
  • Notice of claims

Short policy form - only two pages in length

Need to file a claim?
24/7 claims reporting is available at 1-888-275-7992 or

Online resources