Fiduciary Liability Insurance

What Is Fiduciary Liability Insurance?

Fiduciary liability insurance provides protection for individuals and organizations responsible for managing employee benefit plans, such as 401(k)s, pensions, and health plans. Fiduciaries are legally required to act in the best interest of plan participants. If a mistake is made in plan management or investment decisions, they can be held personally liable for financial losses.


What Does Fiduciary Liability Insurance Typically Cover?

  • Protect plan sponsors, trustees, and administrators from personal liability
  • Cover legal defense costs, settlements, and judgments
  • Address claims involving mismanagement of employee benefit plans
  • Reduce financial risk tied to investment decisions or oversight errors
  • Support compliance with federal ERISA regulations

Why You Should Consider Fiduciary Liability Insurance

Managing employee benefit plans carries significant responsibility. Even small administrative errors or investment decisions can lead to major legal claims. Without proper coverage, individuals responsible for benefit plans may be personally exposed to lawsuits.