Intro to Fiduciary Liability Insurance

The fiduciary liability insurance policy is an important – though rarely used – business insurance policy.

Claims are infrequent. When they do happen, hang on to your hat.

Fiduciary liability insurance protects the administrators of your employee benefit plan from lawsuits alleging a violation of ERISA.

ERISA calls your administrators fiduciaries, and they are personally liable for mistakes they make. Essentially your HR folks and other decision makers have pledged their homes and savings accounts that they will be faithful.

Be sure to thank them next time you pass them in the hall.

Chubb Insurance puts out a nice booklet on preventing losses under fiduciary liability insurance.  Get it here.

Here are some of my other fiduciary liability insurance posts.