Financial Lines

Fiduciary Liability

Fiduciaries of employee benefit plans have a duty to act in the best interests of their plan participants. Professionals who have a fiduciary responsibility to employees or clients can be held financially liable if they violate the requirements imposed by the Employee Retirement Income Security Act (ERISA).

Merely being accused of a violation can result in expensive legal fees, and actual violations may lead to sizeable settlements.

Fiduciary liability insurance gives trustees, employers, fiduciaries, professional administrators, and the plan a broad spectrum of protections. Policies are available for employee benefits managers and those who manage client assets, and specific protections can be adjusted to meet particular individuals’ or businesses’ needs.

Key Considerations

  • Administrative Errors
  • Conflicts of interest
  • Improper counsel or advice
  • Failures to adequately fund plans
  • Wrongful plan terminations
  • Denials or changes of benefits