Does Fiduciary Liability Cover Executives?

An executive’s fiduciary status depends on the function performed, such as discretionary control over a plan or its assets, rather than seniority alone. A company leader who only makes a business decision about whether to establish or amend benefits may be acting for the employer; implementing or administering a plan can involve fiduciary functions. DOL explains these distinctions, while § 410 permits insurance for people serving in fiduciary capacities.

Review the quote’s insured-person definition and whether it covers current and former executives, board members, committee participants, and the organization itself. Check whether the plan itself is insured and whether the claim must arise solely from fiduciary status or can include administrative acts. Confirm limits shared with other management-liability coverages, defense-cost treatment, conduct exclusions, and the reporting trigger; do not assume a D&O policy includes fiduciary liability by name alone.