Does Fiduciary Liability Cover Trustees?

Trustees who exercise authority over plan management or assets can be fiduciaries under ERISA. DOL lists trustees among typical plan fiduciaries and explains that fiduciaries can face responsibility for losses caused by breaches. But a policy’s list of insured persons, covered plans, and wrongful acts decides whether an individual trustee receives protection. The Travelers form is one example and does not establish wording for other insurers.

Check whether named, appointed, independent, and former trustees qualify; whether a corporate trustee or outside fiduciary is covered; and whether the policy has an insured-versus-insured exclusion or allocation terms. Confirm how defense costs are handled if a claim names both insured and uninsured parties. The quote should identify covered plans and persons clearly, and any requested trustee extension should appear in an issued endorsement rather than only a marketing summary.