Trustees of employee benefit plans have a duty to act in the best interests of their plan participants. They may even be held personally liable for the decisions they make. In today’s litigious environment, concerns about a benefits plan can quickly escalate into a lawsuit, which may cost millions of dollars to defend and settle. To help protect your company, fiduciaries, and the benefit plans they manage, Chubb provides Fiduciary Liability Coverage and has taken broad coverage to the next level with our new Fiduciary Liability Settlor Plus Endorsement.
Coverage Highlights
Coverage
With the Fiduciary Liability Settlor Plus Endorsement:
- Broad definition of:
- Insured – Includes committee
- Plan - Includes any pension or welfare plan established anywhere in the world
- Wrongful act – Includes acts, errors or omissions solely in an insured’s settlor capacity with resect to establishing, amending, terminating or funding a trust or plan.
- Loss – Compensatory damages, punitive damages where insurable by law
- Administration – advising, counseling or failing to provide proper or timely notice. Providing interpretations with respect to any benefit program. Handling of records or effecting enrollment, termination or cancellation.
- Claim – Arbitation or mediation. Extradition with respect to criminal proceedings. Regulatory proceeding against an insured person fiduciary by an endorsement unit.
- United States: Voluntary Settlement Program Coverage
- Civil penalties imposed under the Pension Benefits Standards Act in Canada
- 60 days notice of non-renewal
- Non –cancellable by Chubb except for non-payment of premium
- Automatic coverage for newly acquired plans – 30% threshold
- No imputation of knowledge from one insured person to another insured person
Limits
Up to $25 million
Client Profile
Our typical clients include public companies with employee benefit plans
