Does Fiduciary Liability Cover 401(k) Plans?
Fiduciary liability may cover certain claims involving a 401(k) if the plan and insureds meet the policy definitions.
A 401(k) is an employee retirement plan, but confirm the specific plan is included and compare exclusions, limits, and defense-cost treatment.
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.
