Does Fiduciary Liability Cover Breach of Fiduciary Duty?
It is designed to address certain claims alleging fiduciary-duty breaches, subject to the policy’s definitions, exclusions, timing requirements, and limits. It does not excuse or eliminate the underlying duty.
ERISA establishes standards for fiduciaries, and DOL says a fiduciary may be personally liable to restore plan losses or improper profits arising from a breach. Liability policies can insure potential liability: § 410 allows specified parties to purchase such insurance. The Travelers FRI-3001 specimen expressly defines wrongful act to include actual or alleged fiduciary-duty breaches, but its own exclusions and conditions still apply.
Look at the actual insuring agreement and who it protects; the same conduct can involve people or entities with different insured status. Check the conduct exclusion and whether it applies only after a final adjudication, the treatment of defense expenses, and any limits on fines, restitution, benefits, or equitable relief. Confirm prior-acts dates, prior-knowledge provisions, and prompt reporting obligations before assuming an existing dispute is covered.
Related Coverage
Providers That List This Coverage
Sources
- Understanding Your Fiduciary Responsibilities Under a Group Health Plan. U.S. Department of Labor, Employee Benefits Security Administration; Who Is a Fiduciary?; What Is the Significance of Being a Fiduciary?; Bonding. Accessed 2026-09-25.
- 29 U.S.C. § 1110: Exculpatory Provisions; Insurance. Office of the Law Revision Counsel, U.S. House of Representatives; 29 U.S.C. § 1110(b)(1)–(3). 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.
