Protect the people and organizations responsible for your employee benefit and pension plans
Managing employee benefit and pension plans comes with significant responsibilities. Fiduciary liability insurance helps protect fiduciaries, as well as the sponsoring organization and insured benefit plans, against claims alleging breaches of fiduciary duty, errors, omissions or negligence in the management or administration of those plans.
Protection for fiduciary responsibilities
Key areas of fiduciary liability insurance coverage
Decisions involving employee benefit and pension plans can create liability even when they are made with care. Claims may arise from how plans are managed, administered or overseen, including allegations involving fiduciary duties, investment decisions and oversight of service providers.
Breach of fiduciary duty
Helps protect fiduciaries against claims alleging they failed to meet their responsibilities in managing or overseeing an employee benefit or pension plan. Allegations may involve the selection or monitoring of investments, plan expenses, conflicts of interest, or oversight of third-party service providers.
Errors and omissions
Helps protect against claims arising from alleged errors or omissions in the management or administration of an employee benefit or pension plan, such as mistakes involving plan eligibility, enrolment, disclosures or other administrative responsibilities.
Negligent acts
Helps protect against claims alleging that fiduciaries failed to exercise appropriate care when managing or overseeing an employee benefit or pension plan. This may include allegations involving plan investments, oversight of service providers, or decisions that negatively affect plan participants or beneficiaries.
Plan Management and Administration
Can provide protection against claims arising from certain acts, errors or omissions in managing or administering employee benefit and pension plans, as well as allegations involving the oversight of plan assets, investments or service providers.
Legal defence costs
Helps cover eligible legal expenses associated with defending fiduciaries and organizations against allegations of wrongdoing, reducing the financial burden that can accompany a fiduciary liability claim.
Settlements and judgements
Coverage may respond to eligible settlements or judgments resulting from claims made by plan participants or beneficiaries, helping protect both the organization and the individuals responsible for fulfilling fiduciary duties.
Expert guidance for complex responsibilities
Protect your fiduciaries with the right insurance strategy
Navacord advisors help businesses understand their fiduciary exposures and build coverage designed to protect the organization and the people entrusted with managing employee benefit and pension plans.
Understand your fiduciary exposures
Our advisors help identify potential liability risks associated with managing and administering your organization’s employee benefit and pension plans.
Build coverage around your organization
Get fiduciary liability protection aligned with your organization, employee benefit and pension plans and the responsibilities of your fiduciaries.
Access expertise when risks evolve
As your organization and benefit plans change, our advisors can help ensure your insurance strategy continues to respond.
FAQs for fiduciary liability insurance
Fiduciary liability insurance helps protect businesses and individuals responsible for managing employee benefit and pension plans against claims alleging breaches of fiduciary duty, errors, omissions, or negligent acts.
Organizations that sponsor employee benefit or pension plans, and the individuals responsible for managing or overseeing those plans, may face fiduciary liability exposures. Coverage can help protect both the organization and those responsible for making decisions about or administering these plans.
Fiduciary responsibilities can arise from the management or administration of various employee benefit and pension plans, including defined benefit and defined contribution pension plans, health and welfare benefit plans, and other employer-sponsored benefit programs.
Depending on the policy, coverage may respond to allegations involving breaches of fiduciary duty, errors, omissions, or negligent acts in the management or administration of employee benefit plans.
Fiduciary liability insurance can provide coverage for eligible legal defence costs associated with covered claims, as well as certain settlements or judgements, subject to the terms and conditions of the policy.
Organizations with US operations may face additional fiduciary exposures. The Employee Retirement Income Security Act of 1974 (ERISA) establishes fiduciary standards for many US employee benefit plans and can impose significant responsibilities on individuals involved in managing or overseeing those plans.
