Fiduciary and Crime Coverage Overview

Fiduciary Liability Insurance

Fiduciary liability insurance protects businesses and individuals who manage employee benefit plans (e.g., 401(k)s, pensions, health insurance) from claims alleging mismanagement or breaches of fiduciary duty under the Employee Retirement Income Security Act (ERISA).

What Does Fiduciary Liability Insurance Cover?

✅ Breach of Fiduciary Duty – Mismanagement of employee benefit plans, resulting in financial losses.
✅ Administrative Errors – Mistakes in plan management, such as improper enrollments or incorrect benefits calculations.
✅ Failure to Provide Proper Investment Advice – Claims that plan managers made poor investment choices harming participants.
✅ Conflicts of Interest – Situations where fiduciaries benefit personally from plan decisions.
✅ Legal Defense Costs – Coverage for attorneys’ fees and settlements from fiduciary-related lawsuits.

What’s Not Covered?

❌ Fraud or Criminal Acts – If proven intentional.
❌ Failure to Obtain Insurance – If the business neglects to provide required coverage.
❌ Wage & Hour Violations – Not related to benefits mismanagement.