Fiduciary liability insurance covers claims filed against fiduciaries by employees and beneficiaries of retirement plans. The claims would be for errors in the handling of employee benefits and retirement plan investments protected under ERISA.
Why Does this Matter?
Because protecting the fiduciaries of employment benefit plans can be complicated. ERISA claims typically aren’t covered by Directors and Officers and Employment Practices Liability policies. So individual fiduciaries may be personally liable for any losses they caused.