Fiduciary Liability
Fiduciary Liability coverage protects against lawsuits brought by employees (plan participants) for losses resulting from the administration of any Employee Benefit Plan offered by the Company. Coverage also includes Voluntary Correction Program Fees.
Coverage is provided for judgments, settlements and defense costs arising from the administration of any Employee Benefit Plan or the violation of any responsibilities or duties imposed by Employee Retirement Income Security Act of 1974 (ERISA), or any common law or statutory law relating to any Employee Benefit Plan.
Key Definitions
Employee Benefit Plans include any Employee Welfare Benefit Plan or Employee Pension Benefit Plan operated by the Company or operated jointly by the Company and a labor organization for the benefit of the Company Employees.
Voluntary Correction Program Fees (VCPF) include fees, fines or penalties paid by the Insured to a governmental authority as part of a Voluntary Correction Program. VCPF does not include the cost to correct non-compliance.
Key Features
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Includes $100,000 in VCPF coverage. |
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If coverage is purchased as a sublimit to the D&O Policy, a one-time reinstatement of the limit of liability for subsequent claims is provided at no additional charge. |
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Paid Fiduciary claims will not erode the limit available to pay Insuring Agreement A claims on the D&O Policy (applies to sublimit only). |
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Coverage is provided at a reduced retention. |
Availability
Coverage is available as a sublimit to the D&O Policy or as a separate limit of liability.