Is Fiduciary Liability Insurance Required?
ERISA generally does not require fiduciary liability insurance, but it may require a separate bond for people handling plan assets.
A contract, lender, investor, board, or plan document could create a separate practical requirement even where ERISA does not.
Check applicable plan documents and agreements, then distinguish any request for “fiduciary insurance” from a required ERISA bond. For a bond, verify which handlers are covered and the required amount. For liability insurance, review policy scope, insureds, exclusions, limits, and dates; don’t assume one product satisfies the other requirement.
