Fiduciary Liability Insurance
What is Fiduciary Liability Coverage?
Fiduciary Liability Insurance provides protection against the financial impact of legal liability arising from claims for alleged failure to prudently act within the meaning of the Employee Retirement Income Security Act of 1974 (ERISA).
Under ERISA, fiduciaries can be held personally liabile for losses to a benefit plan incurred as a result of their alleged errors, omissions, or breach of their fiduciary duties. Lawsuits can be brought against a privately owned company, its fiduciaries, and its plans by a host of parties, including plan participants (employees) and their legal estates, as well as the Department of Labor and the Pension Benefit Guarantee Corporation.
The specialized coverage provided by Fiduciary Liability Insurance may be offered as an optional additional coverage at an additional premium on Commercial Package Policy (CPP). It can also be included in a customized commercial insurance plan.
Shopping for Fiduciary Liability Insurance?
Brunswick Companies' team of commercial insurance specialists provides the expertise to help you identify your exposures and simplifies your insurance purchase, providing the information you need to make an informed decision. We will work with you one-on-one to identify the fiduciary liability coverage plan that suits your specific needs.
Comparing Fiduciary Liability Insurance Plans
Brunswick Companies offers fiduciary liability policies from wide range of top ranked insurers. All of the insurers we represent have received ratings of A- (excellent) or better from A.M. Best Company. With over 35 years of commercial insurance experience, we have the know-how and industry contacts to match your needs with the plan that best suits your risk management and financial goals.
Coverage is provided using nonstandard forms. Among the elements that should be compared are:
- Definition of insured persons
- Definition of covered plans
- Definition of wrongful acts
- Definition of claim
- Percentage of defense costs paid
- Coverage for punitive or exemplary damages
- Reporting period
The important information to be obtained in any form is that it conforms to current pension law. Brunswick Companies is here to assist you in evaluating your exposures and the level of protection required to meet the legal requirements.
We can evaluate, negotiate and enforce your fiduciary liability, directors and officers (D&O) policy, employment practices liability and other management liability insurance policies. Our clients range from Fortune 500 companies to smaller corporations as well as privately owned businesses.
Who Should Consider Purchasing a Fiduciary Liability Policy?
Associations that have pension plans and trustees to administer the plan should consider purchase of this coverage.
Under ERISA, fiduciaries are personally liable for losses to benefit plans incurred as a result of alleged breaches of their fiduciary duties. Trustees of employee benefit plans are expected to act in the best interests of the plan participants. If this duty is intentionally or unintentionally compromised, trustees can be held personally liable. Lawsuits can cost millions of dollars to defend and settle. Claims can be brought by past or present employees or their families, or by the Department of Labor, which enforces ERISA.
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