Fiduciary Liability Policy Feature Checklist
What to confirm in a fiduciary liability policy — what's standard, what's often limited, and what to add if needed — plus the gap most often missed.
Pull out your current fiduciary liability policy and check the box next to each feature you can confirm it includes — anything unchecked is worth a quick conversation with your advisor.
Tick each feature you can confirm your policy includes — anything left unticked is a good question for your next policy review.
| Confirm? | Policy feature | What to confirm | Priority |
|---|---|---|---|
| Breach of Fiduciary Duty | Covers claims that plan fiduciaries acted imprudently or not in participants' interest. | Standard | |
| Individual Fiduciaries Covered | Confirm committee members, officers, and employees acting as fiduciaries are insureds. | Standard | |
| Errors in Plan Administration | Covers mistakes in enrollment, eligibility, notices, and benefit calculations. | Standard | |
| Defense Costs | Confirm defense is covered and how it affects the limit. | Standard | |
| Excessive Fee & Class Action Retention | Fee suits often carry a separate retention of $250,000 or more — confirm the amount. | Often limited | |
| Forfeiture & Prohibited Transaction Claims | New claim types may be sublimited or excluded — confirm they are covered. | Often limited | |
| Voluntary Correction Program (VCP / VFCP) Fees | Covers IRS and DOL correction fees — usually a small sublimit. | Often limited | |
| ERISA Civil Penalties (502(c), | 502(l)) Covers certain government penalties — often sublimited. | Often limited | |
| Equitable Relief (Section 502(a)(3)) | Many policies do not clearly cover court-ordered restitution or surcharge. | Often limited | |
| Health & Welfare Plans | Confirm self-funded health plans and surcharge claims are not excluded. | If needed | |
| Prior Acts / Retroactive Date | Fee claims reach back six years — confirm prior acts coverage. | If needed | |
| ERISA Fidelity Bond (separate) | Required by law and not provided by this policy — it sits on the crime policy. | If needed |
The gap most often missed in this coverage
The gap most often missed in fiduciary coverage is the class-action retention. The base deductible may be $10,000, but excessive-fee and similar class actions often carry a separate retention of $250,000 to $500,000 or more — and more than 600 fee suits have been filed in ten years, reaching plans as small as $4.5 million. Many owners also assume the ERISA bond covers these suits; it only covers theft. Confirm the class-action retention, keep committee minutes, and benchmark fees regularly.
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Related: Fiduciary Liability Insurance · Fiduciary Liability Supplemental (apply) · All coverage checklists
Frequently asked questions
What should a fiduciary liability policy include?
Standard features to confirm in a fiduciary liability policy include Breach of Fiduciary Duty, Individual Fiduciaries Covered, Errors in Plan Administration, Defense Costs. This checklist also flags the features that are often limited or sublimited and the ones to add if needed, with a plain-English note on each.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my fiduciary liability coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.