Fiduciary Liability Insurance
Trustees and other fiduciaries of multi-employer funds face significant personal liability in their daily duties due to responsibilities as imposed by the Employee Retirement Income Security Act (ERISA). Fiduciary liability coverage is insurance that protects Insureds from losses caused by claims that challenge the way a plan is administered, managed or operated.
Who is Covered
Similar to union liability insurance, the scope of who is insured is broad and flexible. Included is coverage for the plan, former and current trustees, employees, committees and any others designated by endorsement.
What is Covered
Fiduciary liability insurance is constantly evolving to keep up with new laws and outcomes under ERISA. In a fiduciary liability policy, an insurance company agrees to reimburse a benefit fund or other claimant for losses caused by violations of ERISA fiduciary duties or errors by the fund's trustees or other fiduciaries. It is important that you have a broker like Union Services Agency that keeps up with the constantly evolving changes in the fiduciary liability marketplace.