Municipal and Governmental Fiduciary Liability
Almost all states and municipalities have adapted the bedrock fiduciary standard of personal liability for beneficiaries. Although municipal and governmental benefit plans are not regulated by ERISA, the standards to which they are regulated are almost always derived and adapted from ERISA. This means that any accusation of dishonesty or mismanagement by trustees can put the entire fund at risk. Trustees may become personally liable if uninsured, thus becoming embroiled in massive public suits that can genuinely cost you your livelihood. Public pension fund fiduciary liability insurance is the most comprehensive and economical way to defend yourself in negligence suits.
Who is Covered
Under a municipal or governmental fiduciary policy, the definition of who is insured is broad. Trustees, beneficiaries and the plan itself all stand to benefit from this policy.