Employee pension, benefit, and compensation programs are becoming increasingly complex. Anyone who serves as a trustee or who has discretionary authority over a pension, or other employee benefit plan, assumes a certain level of risk. Moreover, along with the increase in shareholder securities class action litigation, plaintiff attorneys have added ERISA “tag along” suits to the shareholder claims. However, the vast majority of fiduciary claims are brought by present or past employees or their families. The Department of Labor is yet another claimant who can bring civil fines and penalties against companies.

Fiduciary liability insurance protects benefit plans, the sponsor organization, and individuals acting as fiduciaries or administrators of the plans. The policy covers liabilities arising out of violations of any of the responsibilities, obligations or duties imposed upon fiduciaries by ERISA.