Under the Employee Retirement Income Security Act of 1974 (ERISA), fiduciaries can be held personally liable for losses to a benefit plan incurred as a result of their alleged acts, errors or omissions, or breach of their fiduciary duties. If you are in a position to make decisions about your company's retirement, profit sharing, 401(k) plan or other qualified employee benefit plan(s), your personal assets are at risk. Even with a participant directed 401(k) plan, named fiduciaries and Plan Trustees are not the only targets of such lawsuits; targets can also include the employer and even the plan itself.  Claims can be brought by plan participants, participant's legal estates, the Department of Labor, and the Pension Benefit Guarantee Corporation.

Under ERISA, fiduciaries may be held personally liable for breach of their responsibilities in the administration or handling of employee benefit plans. Fiduciary Liability Insurance is not required by ERISA. However, it is strongly recommended if you are a fiduciary of a welfare and/or pension plan because your personal assets are at stake. Many fiduciaries mistakenly believe that their ERISA Fidelity Bond protects their personal assets. Furthermore, many think that this type of coverage is included in their D&O policy. Most D&O policies exclude fiduciary liability exposures as well as those exposures pertaining to ERISA.

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 ERISA. "Insured" is 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 and retirement plans, are within the scope of the law.

CIS provides primary coverage through the Wrap+® policy, underwritten by Travelers Casualty and Surety Company of America, an issuing company of Travelers. Wrap+® Fiduciary protects the fiduciaries of employee benefit plans for sums they are legally obligated to pay as a result of actual or alleged "wrongful acts" or breach of their fiduciary duties. The policy also provides coverage for defense expenses to defend a claim made against the fiduciary for an actual or alleged "wrongful act". Also included is the Travelers Risk Management PLUS+® online system and access to ERISA attorneys.

CIS also underwrites excess Fiduciary coverage on behalf of Travelers on their Excess Liability policy.  See Excess Page for more information

"Nothing stated herein affects the terms, condition and coverages of any insurance policy or bond issued by any of the referenced insurers, nor does it imply that coverage does or does not exist for any particular claim or type of claim under any such policy or bond. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations "

Coverage underwritten by Travelers Casualty and Surety Company of America and its property casualty affiliates, Hartford, CT 06183