Does Fiduciary Liability Cover Health Plans?
Fiduciary liability may cover claims involving a health plan if the plan and insureds meet the policy terms.
Private-sector health plans may be subject to ERISA. Confirm the plan is included and whether the alleged error concerns fiduciary decisions or administration.
Some public-sector and church-sponsored plans are outside ERISA, and an insurance policy may have its own plan eligibility rules regardless. Tell the broker whether the health arrangement is fully insured, self-funded, a health reimbursement account, or another design, and identify the plan sponsor and administrators. Check whether the actual quote includes that plan and whether it addresses administrative errors, benefit disputes, defense costs, and any relevant exclusions or endorsements.
