Get Fiduciary Liability Coverage Application - Rli Insurance Co

Fiduciary liability insurance is designed to protect the business from claims of mismanagement and the legal liability arising out of their role as fiduciaries. A fiduciary liability policy covers associated legal costs to defend against claims of errors and a breach of fiduciary duty.

As is also the case with other types of professional and management liability policy forms, fiduciary liability policies are written on a claims-made basis.

For this reason, fiduciary liability insurance is a crucial form of risk management and mitigation for plan fiduciaries. It protects their personal assets and from going personally bankrupt after their professional mistake financially harms plan participants.

Fiduciary liability insurance covers you, your company, and any employee acting as a fiduciary. It protects against many claims, including but not limited to: errors and omissions when administering benefits.

Fiduciary liability insurance, also known as management liability insurance, is intended to protect businesses and employers against claims resulting from a breach in fiduciary duty. Essentially, the policy protects parties against liability for managing or administering employee benefits plans.

The primary responsibility of fiduciaries is to run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses. Fiduciaries must act prudently and must diversify the plan's investments in order to minimize the risk of large losses.

Your fiduciary liability policy will usually cover all your legal defense costs, all settlements negotiated, damages awarded by the court when there's a finding of wrongdoing, and investigations into the alleged wrongdoing.

Fiduciary liability is the responsibility on trustees, employers, fiduciaries, professional administrators, and the plan itself with respect to errors and omissions (E&O) in the administration of employee benefit programs as imposed by the Employee Retirement Income Security Act (ERISA).