Protect Your Fiduciary with Comprehensive Liability Insurance

With great power comes great responsibility: and an even greater exposure to claims of negligence. Few positions of authority are more fraught with possible assertions of mismanagement than that of a fiduciary entrusted with administering an organization’s savings, pension, benefits and/or health plans.

Under terms of the Employment Retirement Income Security Act (ERISA) of 1974, plan administrators can be held personally responsible for such claims. With litigation on the rise, it is vitally important to protect your organization with a fiduciary liability insurance policy.

Why Not E & O or D & O?

An errors and omissions (E & O) policy will not provide coverage for a fiduciary claim. E & O policies defend against claims from clients, not from employees. In addition, most director’s and officers (D&O) insurance specifically excludes claims of fiduciary misconduct.

What Is Covered?

A fiduciary liability insurance policy does not provide coverage for theft or fraudulent acts. Instead, a fiduciary liability plan is set up to cover negligence or human error, including claims such as:


  • Poor investments or failure to diversify investments
  • Errors in counseling employees regarding plan benefits
  • Inadequate communication
  • Failure to file required reports
  • Computing mistakes

Policies typically include coverage for legal defense expenses and judgment or settlement awards, up to the terms of the insurance. Don’t leave your fiduciary unprotected, consider a comprehensive liability policy today.