IRA/Keogh Liability

IRA/Keogh Liability protects against losses resulting from Wrongful Acts while acting in the capacity of administrator, trustee or custodian of any Individual Retirement Account or H.R. 10 Plan (Keogh) outside the scope of the bank’s trust department.

Sample Endorsement
Coverage Summary

Claims Examples
  • Stock dividends are received by a bank for a customer’s IRA account, but are not reinvested in a timely manner as had been requested by the customer. This causes the customer to suffer a lower rate of return on the investment. The customer sues the bank, alleging negligence and breach of fiduciary duty. While depreciation in the value of securities due to market fluctuation unrelated to any Wrongful Act is not covered, defense costs incurred to defend the bank are covered.
  • A bank is sued by a customer alleging that the proceeds from her IRA were distributed in error.
  • Available as part of the Bankers Professional Liability endorsement; part of the Broad Form Company Liability endorsement; or as a separate endorsement to the D&O Policy.
  • 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. 
  • Paid IRA/Keogh claims will not erode the limit available to pay Insuring Agreement A claims on the D&O Policy (applies to sublimit only).
  • Coverage is provided at a reduced retention.



Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.