Does Insurance Cover 401(k) Lawsuits?
Fiduciary liability insurance may cover certain claims over 401(k) management; an ERISA bond instead protects the plan against covered dishonest handling losses.
Employees may sue over benefits or alleged fiduciary breaches. Compare the complaint with both contracts because a bond does not pay ordinary liability claims.
For an existing demand, preserve it and follow the applicable policy’s notice and consent requirements promptly. For a renewal, schedule the 401(k) and all relevant insureds; compare prior-acts and prior-known-matter provisions, defense costs, benefit-payment or restitution terms, and limits. Check whether the ERISA bond remains adequate too. Do not assume that having a bond, D&O, or a general “management liability” package resolves every 401(k) allegation.
Coverage Guides Related to Fiduciary Liability Insurance
Which Providers List Coverage for Fiduciary Liability Insurance?
Sources for Fiduciary Liability Insurance Answers
- FAQs about Retirement Plans and ERISA. U.S. Department of Labor, Employee Benefits Security Administration; What are the responsibilities of plan fiduciaries?; Is it possible to sue under ERISA? Accessed 2026-09-25.
- Field Assistance Bulletin No. 2008-04: Guidance Regarding ERISA Fidelity Bonding Requirements. U.S. Department of Labor, Employee Benefits Security Administration; Q2 pp.2–3. Accessed 2026-09-25.
- Fiduciary Liability. Travelers Casualty and Surety Company of America; II.D,J–L pp.2–3; II.A p.1; II.V p.5; Header p.1; II.M p.3; III.A.6–8 pp.5–6; II.M.2 p.3; III.B.1 p.6. Accessed 2026-09-25.
- Liability General Terms, Conditions and Limitations. Travelers Casualty and Surety Company of America; III.F–G p.6. Accessed 2026-09-25.