Does Fiduciary Liability Cover Benefit Plan Mistakes?

A plan mistake can lead to different kinds of alleged loss. In Travelers’ sample policy, “Wrongful Act” includes certain negligent acts, errors, or omissions in administering employee benefits, such as handling records or enrollment. However, its “Loss” definition generally excludes benefits that are or may become due, while preserving specified defense and other exceptions. That wording illustrates the distinction between alleged covered liability and simply paying a benefit promised by the plan.

Describe the error and requested remedy precisely when reporting a claim; notify the insurer under the actual policy’s rules. For a quote, ask how it treats enrollment mistakes, missed notices, late contributions, incorrect records, denied benefits, correction expenses, and amounts payable to the plan or participant. Compare any administration-liability extension, exclusions, retention, defense arrangements, and notice deadline in the forms attached to your quote.