"Trust Is Everything. Protect It."
Protecting those who manage employee benefit plans
Fiduciary Liability insurance protects organizations and individuals who manage, administer, or oversee employee benefit plans. These responsibilities carry legal obligations under federal and state law, and failure to meet them can result in significant personal and corporate liability.
Fiduciary Liability is not about employee performance — it’s about how benefit plans are managed.
What Fiduciary Liability Insurance Covers
Fiduciary Liability typically responds to claims alleging:
Breach of Fiduciary Duty — Failure to act in the best interests of plan participants.
Errors or Omissions — Administrative mistakes in managing benefit plans.
Mismanagement of Plan Assets — Improper handling or oversight of plan funds.
Failure to Follow Plan Documents — Deviation from written plan terms or procedures.
Legal Defense Costs — Attorney fees, settlements, and judgments associated with covered fiduciary claims.
Coverage often applies to claims brought by employees, beneficiaries, or regulators.
What It Does Not Cover
Fiduciary Liability policies commonly exclude:
Intentional or fraudulent acts
Bodily injury or property damage
Poor investment performance alone
Employment practices claims (covered under EPLI)
Theft of plan assets (covered under crime insurance)
Plan sponsor’s failure to fund benefits
Understanding where Fiduciary Liability ends — and other coverages begin — is critical.
Who Needs Fiduciary Liability Insurance?
Fiduciary Liability is important for organizations that:
Offer retirement plans (401(k), pension plans)
Provide health or welfare benefit plans
Make decisions about plan providers or investments
Administer employee benefit plans internally
Have designated plan fiduciaries or committees
Even small employers with a single benefit plan can have fiduciary exposure.
How Coverage Is Structured
Fiduciary Liability policies are typically written on a claims-made basis and include:
Shared limits of liability
Deductibles or retentions
Defined covered plans
Policy exclusions and endorsements
Coverage is often bundled with D&O or EPLI but should be reviewed independently.
Real-World Claim Examples
Employees allege excessive fees in a retirement plan
Failure to properly enroll or notify plan participants
Errors in benefit calculations
Allegations of imprudent selection of plan providers
Regulatory scrutiny of benefit plans has increased significantly in recent years.
Why Proper Placement Matters
Fiduciary Liability coverage varies based on:
Plan size and complexity
Number of participants
Administrative structure
Regulatory environment
Inadequate coverage can expose executives and plan administrators to personal liability.
Our Approach
At Cory Washington & Co., we help clients understand fiduciary obligations and structure coverage to protect both the organization and those entrusted with benefit plan oversight. Our focus is proactive protection aligned with regulatory reality.
Managing benefits should not mean managing personal risk.
Disclaimer
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.