Fiduciary Liability Insurance

Fiduciary Liability Insurance

Fiduciary liability insurance protects fiduciaries of employee benefit plans against claims alleging they breached their fiduciary duties. It typically covers claims involving imprudent investment decisions, conflicts of interest, or failures to act in the best interests of plan participants. For example, employees may allege that pension plan trustees mismanaged the plan’s investments or selected excessively expensive investment options. Fiduciary liability insurance may cover the resulting legal liability, subject to the policy terms. It does not cover routine administrative errors, which are typically covered by employee benefits liability (EBL) insurance.
See also: Employee Benefits Liability (EBL) Insurance, Fiduciary, Fiduciary Duty, liability insurance.
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