Fiduciary Liability Insurance: Growing Risks, Growing Challenges

Fiduciary liability insurance can help protect corporate and single employer retirement plan fiduciaries from risks, including excessive fee litigation. Finding adequate coverage has become more challenging as these risks have grown.

An increased risk of benefit plan litigation over matters such as excessive retirement plan fees and investor imprudence puts a spotlight on the importance of having sufficient insurance coverage. Corporate and single employer plans sponsors may want to purchase fiduciary liability insurance, which can help protect the personal assets of individual fiduciaries, the balance sheets of plan sponsors, and the assets of the plan.

Until 15 years ago, only retirement plans with more than $1 billion in plan assets and companies in the health care and education industries were at higher risk of litigation. But plaintiffs are now more aggressively targeting companies within any industry and any size, putting more organizations — and their fiduciaries — at risk of litigation.

This report — written by Marsh's Kate Maybee and first published in Benefits Magazine — explains those risks, how fiduciary liability insurance can address them, and considerations when seeking a fiduciary liability insurance policy. Although most fiduciary liability insurance includes coverage for health and welfare plan fiduciaries, this report primarily focuses on the risks faced by retirement plan fiduciaries. 

Fiduciary Liability Insurance: Growing Risks, Growing Challenges

Click below to read the full report.