ERISA Fiduciary Insurance

Summary

This practice note discusses the use of fiduciary insurance in protecting fiduciaries from liability when managing or providing services to employee benefit plans subject to the Employee Retirement Income Security Act (ERISA). Fiduciary liability insurance is an important, but sometimes overlooked, aspect of a company's risk management plan. This type of insurance covers liabilities resulting from fiduciary errors or omissions when operating employee benefit plans. The insurance is optional and is not a substitute for a fidelity bond or directors and officers (D&O) liability insurance policy, which typically don't provide the scope of coverage that may be necessary to protect the risks imposed upon fiduciaries by ERISA.