Does Fiduciary Liability Cover Plan Administrators?

DOL says plan administrators ordinarily may be fiduciaries, but status depends on the discretion or control exercised; a service provider performing only ministerial work may not be a fiduciary on that basis alone. The Travelers specimen separately defines insured persons and certain covered administration errors, illustrating that legal status and insurance status are related but not identical questions.

Identify each administrator and specify whether they are employees, committee members, an outside provider, or a plan-named fiduciary. Read who qualifies as an insured person and insured organization; check whether third-party administrators and their acts are covered, whether the plan itself is insured, and how the policy treats negligent administration versus fiduciary-duty allegations. Review any consent, contractual-liability, or professional-services provisions and get the answer in the insurer’s written quote or endorsement.