Does Fiduciary Liability Cover Breach of Fiduciary Duty?
Fiduciary liability is designed to cover certain claims alleging benefit-plan fiduciary breaches, subject to the policy’s terms.
ERISA can make fiduciaries personally liable for losses caused by a breach. Insurance may fund covered defense and liability; it does not remove the underlying duty.
Look at the actual insuring agreement and who it protects; the same conduct can involve people or entities with different insured status. Check the conduct exclusion and whether it applies only after a final adjudication, the treatment of defense expenses, and any limits on fines, restitution, benefits, or equitable relief. Confirm prior-acts dates, prior-knowledge provisions, and prompt reporting obligations before assuming an existing dispute is covered.
Coverage Guides Related to Fiduciary Liability Insurance
Which Providers List Coverage for Fiduciary Liability Insurance?
Sources for Fiduciary Liability Insurance Answers
- Understanding Your Fiduciary Responsibilities Under a Group Health Plan. U.S. Department of Labor, Employee Benefits Security Administration; Who Is a Fiduciary?; What Is the Significance of Being a Fiduciary?; Bonding. Accessed 2026-09-25.
- 29 U.S.C. § 1110: Exculpatory Provisions; Insurance. Office of the Law Revision Counsel, U.S. House of Representatives; 29 U.S.C. § 1110(b)(1)–(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.