Fiduciary Liability Insurance
If your company sponsors employee benefit plans — 401(k), health insurance, pension, profit sharing — you have fiduciary responsibility under ERISA (Employee Retirement Income Security Act). Fiduciary liability insurance protects the individuals who manage, administer, or make decisions about these plans from personal liability when employees allege mismanagement, improper investment choices, or administrative errors.
Coverages we place
- Defense costs for ERISA breach of fiduciary duty claims
- Settlements from employee benefit plan mismanagement allegations
- Improper investment selection or monitoring of 401(k) options
- Administrative errors in plan enrollment, contributions, or distributions
- Failure to follow plan documents
- Prohibited transactions under ERISA
- Class action defense for plan participants
- DOL (Department of Labor) investigation costs
Who needs this coverage
Any company that sponsors or administers employee benefit plans: businesses with 401(k) or retirement plans, companies offering health insurance, organizations with pension or profit-sharing plans, and HR managers or committee members who make decisions about employee benefits.
What drives your premium
- Total plan assets under management
- Number of participants across all plans
- Types of plans (401(k), pension, health, profit sharing)
- Investment management structure (self-directed vs. managed)
- Prior fiduciary claims or DOL audits
- Company size and industry
Common exclusions
- Intentional fraud or criminal acts in plan management
- Bodily injury and property damage
- Employment practices claims (covered by EPLI)
- Personal profit or advantage gained by fiduciary
- Failure to fund the plan (employer contribution obligations)
Frequently asked questions
Do I need fiduciary liability insurance?
If your company offers a 401(k), pension, health plan, or any ERISA-covered benefit, yes. The individuals who administer these plans face personal liability under ERISA. A single fiduciary breach claim can result in six- or seven-figure liability for plan fiduciaries.
How much does fiduciary liability insurance cost?
Fiduciary liability premiums typically range from $1,000–$5,000/year for small to mid-size businesses. Cost depends on plan assets, number of participants, and plan complexity. It's one of the more affordable management liability coverages.
Is fiduciary liability included in D&O insurance?
Some D&O policies include limited fiduciary coverage, but most do not provide adequate protection for ERISA-related claims. A standalone fiduciary liability policy provides significantly broader and deeper coverage for employee benefit plan risks.
Related coverage
Get a free quote or call (321) 206-8035.