Fiduciary Liability

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• Marketing Info
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Coverage Description

Fiduciary Liability protects the fiduciaries of employee benefit plans for sums they are legally obligated to pay as a result of actual or alleged "wrongful act" or breach of their fiduciary duties. The policy also provides coverage for defense expenses to defend a claim made against the fiduciary for an actual or alleged "wrongful act."

Policy Features

• Duty to defend
• Broad definition of "wrongful acts"
• Broad definition of claim to include:
• Written demand
• Civil proceeding
• Criminal proceeding
• Formal administrative or regulatory proceeding
• Worldwide coverage
• Marital property extension
• Omnibus welfare plan coverage
• Civil penalties under sections 502 (I) and 502 (i) of ERISA included in definition of damages
• Defense coverage for claims seeking benefits due or injunctive or equitable relief in the U.S.
• No exclusion for:
  • Failure to maintain insurance
  • Failure to collect contributions
  • Libel, slander, defamation
• Severability of exclusions and application
• Automatic coverage for:
  • Sold plans
  • Terminated plans
  • Newly formed or acquired plans if plan assets are less than 10% of total plan assets
• Continued coverage for:
  • Merged plans
  • All plans for prior acts in the event of change in control
• Bi-lateral Discovery - upon termination or cancellation for any reason, other than non-payment of premium, the insured organization may purchase an Extended Reporting Period

Target Markets

• Growth Industries
• Manufacturers
• Wholesalers/Distributors
• Select business services

Fiduciary Liability is not available for unions and certain other types of accounts.  Contact your local Travelers Bond & Financial Products underwriter if you have any questions about eligibility.