Fiduciary Liability vs. Employee Benefits Liability: What Is the Difference?

The terms can overlap, so compare policy wording rather than assuming a universal boundary. A Travelers fiduciary specimen includes alleged fiduciary-duty breaches and certain negligent acts, errors, or omissions in benefit administration. Chubb says its employee benefits liability (EBL) coverage can address some plan-administration errors but does not cover breach-of-fiduciary-duty claims. That is Chubb’s product explanation; exact grants differ by insurer and form.

Ask whether the quote covers both alleged breach of fiduciary duty and administrative mistakes such as enrollment or notice errors. Review how each form treats benefit amounts owed, correction costs, defense expenses, third-party administrators, and plan documents. If both coverages are offered, request a written explanation of any difference in limits, retention, claims-made dates, retroactive dates, and notice conditions. Avoid counting two labels as two layers of protection unless their actual grants and limits support that conclusion.