Fiduciary liability insurance protects you against lawsuits alleging a breach of fiduciary duty as well as against administrative errors or omissions. This insurance pays for defense costs and for settlements and judgments up to the policy limits.
It's important to review the policy and its limits on a regular basis to make sure coverage is in line with a number of factors not the least of which is recent lawsuits and judgments.
Under ERISA, a fiduicary can be held personally responsible for benefit plan mismangement. Stay on the right side of the law.
Even if you have other liability policies, fiduciary liability coverage may not be covered.
An additional waiver of recourse rider, which must be paid for with non-plan assets, ensures that trustees' personal assets are also protected.
In recent years, each carrier has included new coverages, including:
The approach varies with each carrier, and the differences can be significant. Understanding what each policy includes and excludes is important.Review Your Coverage