Fiduciary Liability Insurance

Covers you as the fiduciary, and your business, against claims of actual or alleged breaches of duty.

Fiduciary Liability Insurance (FLI) protects plan sponsors.

Although an ERISA bond covers the participants of your plan, it does not cover YOU as the fiduciary from personal liability. Fiduciary liability insurance gives you peace of mind that your personal assets are protected from a breach of responsibility in the administration or handling of an employee benefit plan.

Covers actual and alleged breaches of duty.

Fiduciary Liability Insurance protects you from the substantial legal costs required to defend against fiduciary liability claims, and provides indemnity in connection with settlements and judgments. It provides coverage for defense costs, legal fees, and penalties if you’re sued for fiduciary decisions made for an employee benefit plan.

Know the financial risks you face.

It’s alarming how many fiduciaries do not understand the extraordinary risks they hold every day. With our fiduciary liability insurance, you’re covered for defense costs and penalty limits up to $1,000,000. Watch our video to learn more about why you need this critical coverage.


Fiduciary Liability Insurance is available as part of an ERISA bond package.

We currently offer fiduciary liability insurance with our ERISA bond packages, which provide a greater level of protection and overall value. Two and three year packages also include cyber liability insurance — to safeguard plan assets and your company against a loss due to cyber attack.

Frequently Asked Questions

  • If your company sponsors an employee benefit plan, such as a 401(k) plan or other retirement plan under ERISA, you are considered a fiduciary if you are involved with the management of that plan. If your company is a small company, it is particularly important to consider the fact that as a fiduciary, it is your responsibility to select advisors and investments, hire the plan’s record keeper, minimize expenses, and carefully follow plan documents.

  • Lawsuits can expose fiduciaries to numerous claims by plan participants and beneficiaries. These exposures include claims for failing to make timely contributions, not following plan documents, failing to prudently invest to meet employee expectations, paying excessive fees, and failing to respond to requests for rollovers, distributions, and investment changes.

  • Under ERISA law, fiduciaries can be held personally liable to the plans’ participants/beneficiaries for breach of fiduciary duties and responsibilities. As such, an individual fiduciary’s personal assets are at risk if he/she does not carry out the required fiduciary obligations.

  • It covers the legal defense costs and your personal liability for actual or alleged breaches of fiduciary duties in connection with employee benefit plans. Thousands of ERISA lawsuits are filed each year, and with staggering defense costs required to defend those suits. Fiduciary liability insurance is necessary because while the ERISA bond covers the plan for any loss by theft, it does not cover fiduciaries for lawsuits brought by third parties.

Helpful Resources

Trends in Fiduciary Liability Insurance
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The Need for Fiduciary Liability Insurance is Greater than Ever
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In Fiduciary Breach Case, Fiduciaries Must Prove That Choices Did Not Cause Loss
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