Does Fiduciary Liability Cover 401(k) Plans?
It can cover certain claims involving a 401(k), if the plan and relevant insureds fall within the policy’s definitions and the claim meets its terms. Confirm that the specific plan is included.
A 401(k) is an employee retirement plan, but a policy’s reference to fiduciary coverage does not automatically insure every retirement plan or every plan official. For example, the Travelers specimen defines “Pension Plan” and “Employee Benefit Plan,” limits which employer-sponsored plans qualify, and covers claims meeting its wrongful-act and timing terms. DOL notes that fiduciaries managing 401(k) plans have duties concerning reasonable fees, investment options, plan documents, and participant interests.
Before binding, give the insurer or broker the plan’s legal name, plan type, sponsor, asset and participant information, and identify the people or committees making decisions. Check that the schedule and definitions include the 401(k), any related plans, and the intended insureds. Review prior-acts dates, claim reporting rules, retentions and defense limits; ask how the policy treats benefit payments, restitution, investment losses, and administrative errors.
Related Coverage
Providers That List This Coverage
Sources
- 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.
- 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.
- Fiduciary Liability Coverage Application. Travelers Casualty and Surety Company of America; Requested Insurance Terms p.2; General and Plan Information pp.1–2; Loss Information p.2. Accessed 2026-09-25.
