5 Cities Insurance
Fiduciary Liability Insurance for California Businesses
Fiduciary liability insurance covers claims arising from the administration of employee benefit plans — such as errors in managing a retirement or health plan that cause financial loss. It protects individuals acting as fiduciaries and the plan sponsor. It is distinct from an ERISA fidelity bond, which protects plan assets from theft.
Coverage line pending confirmation
This coverage line is shown for educational purposes. The agency is confirming its availability and authority before it is published as an offered line. Request a quote or ask a question and we will confirm what applies to your business.
Who may need this coverage
- Businesses sponsoring retirement or health benefit plans
- Companies with 401(k) or similar plans
- Plan fiduciaries and committees
What it may cover
Coverage depends on policy wording, exclusions, limits, and underwriting. The following are commonly addressed, subject to the policy terms:
- Claims of fiduciary breach in plan administration
- Defense costs for fiduciary lawsuits
- Certain regulatory penalties, where insurable
Common exclusions and limitations
- Dishonest acts of the fiduciary
- Bodily injury and property damage
- Investment losses from market performance
- Claims covered by other policies where specified
Relevant optional endorsements
- Expanded fiduciary definitions
- Penalty coverage where insurable
- Cyber and data-breach endorsements for plan data
Factors that may affect pricing
- Plan size and number of participants
- Fiduciary governance practices
- Industry and prior claims
- Selected limits
Information typically needed to request a quote
- Plan type and participant count
- Plan assets under management
- Governance overview
- Desired limits
A realistic example
Situation: A plan committee is alleged to have imprudently selected investments, causing participant losses.
How coverage may respond: Fiduciary liability can address the claim and defense costs, subject to the policy terms.
FAQ
Fiduciary Liability questions
Explore Fiduciary Liability for your business
Request a quote with this coverage preselected, or ask a coverage question.