Fiduciary Liability

This type of insurance provides protection for those who administer pension and welfare funds, profit-sharing and other employee benefit programs against loss for errors and omissions by the administrator.

Fiduciary liability pays, on behalf of the insured, legal liability arising from claims for alleged failure to prudently act within the meaning of the Pension Reform Act of 1974. "'Insured"' is variously defined as a trust or employee benefit plan, any trustee, officer or employee of the trust or employee benefit plan, employer who is the sole sponsor of a plan and any other individual or organization designated as a fiduciary.