Management Liability

Fiduciary Liability Insurance

Protection for Employee Benefit Plan Fiduciaries

Employee benefit and retirement plan materials

Fiduciary Liability

Managing Benefits Comes With Added Responsibility

Employers that sponsor employee benefit plans may assign important responsibilities to executives, employees, committees, trustees, or other individuals involved in managing or administering those plans.

Fiduciary liability insurance is designed to help protect insured organizations and plan fiduciaries against certain claims alleging errors, omissions, or breaches of fiduciary duty involving employee benefit plans.

Coverage can vary depending on the insurer, policy form, type of plan, and the role of the person or organization involved.

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Fiduciary Liability Coverage

What Can Fiduciary Liability Insurance Help Address?

Policies vary, but fiduciary liability coverage may respond to certain claims involving the management or administration of employee benefit plans.

Breach of Fiduciary Duty

Certain allegations that a plan fiduciary failed to meet duties owed to participants or beneficiaries.

Plan Administration Errors

Certain claims involving errors or omissions in the administration of an employee benefit plan.

Provider & Investment Oversight

Claims may involve alleged imprudent selection or failure to monitor investments or plan service providers.

Conflicts & Plan Duties

Certain claims may involve conflicts of interest or failure to carry out fiduciary responsibilities.

Understanding the Responsibility

Fiduciary Responsibilities Matter

For employee benefit plans subject to ERISA, fiduciaries are expected to act prudently, follow plan documents, act in the interests of participants and beneficiaries, and avoid conflicts of interest.

Because fiduciaries can face personal liability for certain breaches of those duties, fiduciary liability insurance can be an important part of a management liability program.

Who Is a Fiduciary?

Fiduciary status can depend on the responsibilities and authority a person actually exercises over a benefit plan, not simply the person's job title.

An Important Distinction

Fiduciary Liability vs. an ERISA Fidelity Bond

They serve different purposes and should not be treated as interchangeable.

Different Risks, Different Protection

An ERISA fidelity bond generally protects the plan against certain losses caused by fraud or dishonesty. Fiduciary liability insurance addresses certain claims alleging breaches of fiduciary duty, errors, or omissions. Fiduciary liability insurance does not replace an ERISA fidelity bond.

Beyond the Policy

How DiNicola Can Help

Fiduciary liability coverage can involve important distinctions in who is insured, which plans are covered, and how the policy responds. We help clients understand those details within the broader management liability program.

Review Plan Exposures

We look at employee benefit plans, responsible parties, administrative practices, and other relevant exposures.

Compare Policy Terms

We help review definitions, covered plans, insured parties, exclusions, limits, retentions, and defense provisions.

Coordinate Coverage

We consider how fiduciary liability fits with D&O, EPLI, crime, and other parts of the insurance program.

Risk Management Resources

We can connect clients with resources supporting benefit plan administration, fiduciary awareness, and risk management.

Management Liability

Explore Related Management Liability Coverage

Fiduciary Liability is one part of a broader management liability program. Explore the related coverage areas below.

Directors & Officers Insurance

Coverage addressing certain claims involving leadership, governance, and management decisions.

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Employment Practices Liability

Coverage addressing certain claims involving discrimination, harassment, retaliation, wrongful termination, and other employment practices.

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Management Liability Overview

See how D&O, EPLI, and Fiduciary Liability fit together within the broader management liability category.

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Business Insurance

Other Business Insurance

Explore additional coverage options that may be part of a broader business insurance program.

This page provides general information about fiduciary liability insurance. Coverage varies by insurer and policy. Covered plans, insured parties, covered claims, exclusions, limits, retentions, defense provisions, and other terms are governed by the policy actually issued. Information regarding ERISA is general and is not legal advice.

Let's Talk About Fiduciary Liability

We can help you review your employee benefit plan exposures and understand how fiduciary liability coverage may fit into your broader management liability program.

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