What Are Examples of Fiduciary Liability Claims?
Hypothetical examples include a claim alleging imprudent 401(k) fees or an enrollment error that affected benefits. Whether a policy responds depends on its terms and the facts.
Hypothetically, employees might allege that a plan committee failed to monitor investment or recordkeeping fees, or a participant might allege that an enrollment or records error caused a loss. Those scenarios resemble duties and administration acts described by DOL and a Travelers specimen. Travelers also publishes illustrative examples involving alleged contractor eligibility for retirement benefits and alleged excessive 401(k) fees; those examples are company-reported scenarios, not a prediction of coverage under another policy.
A claim’s allegations, requested relief, insured status, and timing all matter. A policy may treat defense costs, benefits owed, restitution, injunctions, or penalties differently. Save the demand and related plan records, notify the carrier as required, and avoid agreeing to a settlement or incurring costs without checking consent rules. For the quote, compare the relevant definitions and exclusions against the kinds of disputes your plan could face.
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Sources
- Understanding Your Fiduciary Responsibilities Under a Group Health Plan. U.S. Department of Labor, Employee Benefits Security Administration; Who Is a Fiduciary?; What Is the Significance of Being a Fiduciary?; Bonding. Accessed 2026-09-25.
- Fiduciary Liability. Travelers Casualty and Surety Company of America; II.D,J–L pp.2–3; II.A p.1; II.V p.5; Header p.1; II.M p.3; III.A.6–8 pp.5–6; II.M.2 p.3; III.B.1 p.6. Accessed 2026-09-25.
- Liability General Terms, Conditions and Limitations. Travelers Casualty and Surety Company of America; III.F–G p.6. Accessed 2026-09-25.
- Fiduciary Liability Insurance. Travelers; What Is Fiduciary Liability Insurance? Accessed 2026-09-25.
