Trustee Fiduciary Insurance

Fiduciary Liability Insurance pays, on behalf of the insured, the legal liability arising from claims for alleged failure to prudently act within the meaning of the Pension Reform Act of 1974.

“Insured” is variously defined as a trust or employee benefit plan, any trustee, officer or employee of the trust or employee benefit plan, employer who is sole sponsor of a plan and any other individual or organization designated as a fiduciary. Group life and medical expense plans, as well as pension, retirement, vacation and training plans, all fall within the scope of the law.

Over the years the Department of Labor has increased their vigilance in making sure that the assets of plans, especially multi-employer plans are protected and managed properly for the benefit of the membership of unions. In addition, changes to the Act such as  section 502(I) have added penalties and fines that need to be addressed by Trustees in order to properly protect themselves and the plan. Often times Fiduciary policies exclude coverage for these law changes. Your policy must be kept up with the times.