Fiduciary Liability Insurance

Fiduciary liability insurance is a popular vehicle for protecting individuals charged with the responsibility of creating, managing, and administering employee benefit plans within business organizations.

Coverage Scope

Fiduciary Duties: Fiduciary liability insurance primarily covers claims related to breaches of fiduciary duties. This includes allegations of mismanagement, negligence, errors, omissions, or imprudent investment decisions in the management of employee benefit plans.

Legal Defense: The policy typically covers legal defense costs, including attorney fees, court expenses, and settlements or judgments in covered claims. This is essential because legal disputes related to employee benefit plans can be complex and costly to resolve.

ERISA Compliance: Fiduciary liability insurance helps ensure compliance with the Employee Retirement Income Security Act (ERISA), which governs the management and operation of employee benefit plans in the United States.


Risk Mitigation: Fiduciary Liability Insurance helps individuals and entities serving as fiduciaries manage the substantial financial risks associated with potential breaches of fiduciary duties, reducing the impact on their financial stability.

Compliance: It encourages fiduciaries to act prudently, in accordance with ERISA regulations and best practices, to minimize the likelihood of legal claims related to their management of employee benefit plans.

Talent Attraction and Retention: Having fiduciary liability insurance can enhance a fiduciary's reputation and make it more attractive to individuals willing to serve in such roles, which is essential for the successful administration of employee benefit plans.

Legal and Regulatory Requirements: In many cases, fiduciary liability insurance may be required by law, by employee benefit plan documents, or by clients or organizations overseeing the plan.

Koru Korner

Related Articles

No items found.

ILS: Transforming from Competitor to Strategic Partner, Elevating the Reinsurance Sector to New Heights

Artemis Update: AM Best has upgraded its outlook on the global reinsurance sector from stable to positive for the first time in over a decade, highlighting robust profit margins and improved underwriting conditions. The rating agency now views insurance-linked securities (ILS) as strategic partners rather than competitors, emphasizing their role in supporting traditional reinsurers. Despite a deceleration in reinsurance pricing, AM Best notes that underwriting discipline and healthy profit margins are expected to be maintained.


May to Break Another Cat Bond Record: Biggest Month of Issuance Ever

Exciting news in the world of finance and risk management! May is set to break records as the biggest month of catastrophe bond issuance ever. According to a recent article from Artemis, the market is experiencing unprecedented growth, highlighting the increasing demand for innovative risk transfer solutions.


2023 Habitational State of the Market – Casualty

The habitational insurance market is facing a multitude of hurdles when it comes to casualty placements. Casualty markets in the habitational space have been adjusting prices due to increased loss activity and the continued impact of social inflation. Within this landscape, property owners, insurance companies, and brokers are confronted with a new reality. There are few markets offering General Liability (GL) coverage. It’s also difficult to find markets willing to participate in the lead $5M of excess coverage, making the marketplace even more challenging. To succeed in this demanding market, one must strike a careful balance between innovation, robust risk assessment, and adaptability.

Ready to partner with Koru?

Request a Risk Assessment today!