What Is Fiduciary Insurance?
Managing employee benefit plans comes with significant legal responsibilities. Fiduciary Insurance protects individuals and companies from liability arising out of their role in administering benefit plans — such as health, retirement, or pension programs. Even unintentional errors can result in costly lawsuits. This coverage ensures your fiduciaries are protected and your compliance is sound.
Legal Defense Costs
Covers attorney fees and court expenses in defending against fiduciary-related claims.
Investigations and Regulatory Penalties
Provides coverage for costs related to government investigations and certain fines or penalties.
Settlements and Judgments
Pays for settlement amounts or court-awarded damages arising from covered claims.
Errors in Plan Administration or Advice
Protects against financial loss due to mistakes in managing or communicating benefit plans.
Who Needs Fiduciary Insurance?
If your company offers employee benefit plans — such as:
401(k) or pension plans
Health insurance plans
ESOPs or profit-sharing plans
Disability or life insurance benefits
…then you may have a fiduciary duty, even if you’re outsourcing some administrative tasks. Fiduciary Insurance protects against personal and organizational liability arising from plan missteps or perceived negligence.
Key Benefits of
Fiduciary Insurance
Legal Defense Coverage
Covers legal fees in case of claims involving plan mismanagement or errors.
Personal Liability Protection
Safeguards the personal assets of fiduciaries and plan administrators.
Compliance Assurance
Supports regulatory compliance and mitigates risks from ERISA violations.
Coverage for Administrative Errors
Protects against inadvertent mistakes in managing or communicating plan details.
Protection for the Organization
Covers the company itself from lawsuits related to fiduciary breaches.
Peace of Mind for Leadership and HR
Enables confident decision-making while managing complex benefit structures.