Does Fiduciary Liability Cover Breach of Fiduciary Duty?
Fiduciary liability is designed to cover certain claims alleging benefit-plan fiduciary breaches, subject to the policy’s terms.
ERISA can make fiduciaries personally liable for losses caused by a breach. Insurance may fund covered defense and liability; it does not remove the underlying duty.
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.
