Fiduciary liability coverage is written to protect plan fiduciaries in the event that they breach their duties under ERISA. The Employee Retirement Income Security Act of 1974 (ERISA) substantially increased the liabilities of fiduciaries in the United States.

What we cover:

  • ERISA violations
  • Conflict of interest in investment of plan assets
  • Imprudent investment decisions
  • Inappropriate loans using plan assets
  • Improperly advising plan participants
  • Mishandling of funds
  • Inaccurate year-end reporting
  • Delinquent employer contributions

What we write:

Why buy Fiduciary coverage?

  • Protection against fiduciary liability
  • Coverage for administrative errors
  • Coverage for legal defense costs
  • Regulatory compliance

Understanding coverage

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  • Covered defense costs to be in addition to limits of liability
  • Claim specifically includes proceeding before the Department of Labor or the Pension Benefit Guaranty Corporation
  • Coverage for single employer plans, including Employee Stock Ownership Plans
  • Defense costs coverage for 5% and 20% penalties imposed under 502(i) and 502(l) of ERISA
  • No discrimination exclusion
  • Automatic coverage for newly acquired or created plans
  • HIPAA Coverage
  • Ability to give Notice of potential claims during Discovery Period
  • Automatic waiver of recourse provision
  • Full severability of all exclusions
  • No retention (when EPL Coverage Section purchased)
  • Duty to defend form
  • Worldwide coverage
  • Coverage non-cancelable by underwriters except for non-payment of premium.
  • Broad definition of insureds, including coverage for Directors and Officers, employees as well as the corporate entity and any such organization as a debtor -in-possession or a bankruptcy estate of such entity.
  • Severability as respects all exclusions and the application.
  • Spousal/domestic partner extension
  • Broad definition of subsidiary to include automatic coverage for newly created or acquired subsidiaries with no threshold or reporting requirements. Automatic coverage for joint ventures.
  • Multiple year run off and discovery period options offered at time of quote.
  • Bilateral discovery
  • No Consent to Settle clause
  • *Note: the above coverage highlights are for illustration purposes only and shall not be construed as policy interpretations.
Target Segments
  • Up to $100M in plan assets
  • Ability to consider ESOPs
  • Admitted in 46 states
Terms
  • $5MM in capacity for each coverage section. Options for combined or separate limits of liability are available on every account.
  • Duty to Defend with no Consent to settle clause
Underwriting
Eligible and ratable online submissions will not be referred to an underwriter unless the risk has either claims or a net loss greater than $3MM. Some benefits of our underwriting services include:
  • Simplified application
  • No financials
  • No handbooks
  • No articles of incorporation needed on most accounts
Target classes
Target classes included but not limited to:
  • Accountants
  • Advertisers
  • Alternative energy
  • Automotive services
  • Collection agencies
  • Contractors
  • Co-ops
  • Daycare centers
  • Distributors
  • Defense contractors
  • Employment/staffing firms
  • Franchisee and franchisor
  • Healthcare
  • Hospitality
  • Information technology
  • Insurance agents/brokers
  • Life sciences
  • Manufacturers
  • Medical billing
  • Personal services
  • Professional services organizations
  • Retail
  • Real estate
  • Telecommunication
  • Transportation services
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Claims examples

Each claim is unique and requires a review of your policy terms and conditions, but you can learn more about past claim scenarios for many of our product offerings to understand potential outcomes.

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