Navigating tomorrow’s global climate risks today
Experts agree that some climate change is inevitable. Leading businesses are taking action now to identify and mitigate these longer-term risks.
Fiduciary Liability Insurance from Zurich can be a vital part of reducing that risk. As one of the leaders in management liability products and services, we bring responsiveness in underwriting, claims, international capabilities, and customer service. Most importantly, we understand the scope of fiduciary liability risks and how they are evolving, so we’re ready to offer insurance solutions that meet the needs of your organization.
Fiduciary liability protection that goes beyond insurance.
While Fiduciary Liability Insurance is essential for any business offering an employee health or retirement benefits plan, effective risk management encompasses much more than risk transfer. One of the best ways to avoid or minimize fiduciary risk is to take make informed and diligent decisions about plan administration, including establishing and documenting fiduciary processes and procedures and regular review and monitoring of investment options and plan performance. Zurich will work with customers to support their risk management objectives and, where applicable, suggest risk mitigation services.
Types of Fiduciary Liability Insurance available from Zurich
While the trend toward growing liability risks for fiduciaries is widespread, Zurich understands every company is different. We work to provide customers with the coverages most appropriate for their business model and its associated fiduciary liability exposures. We offer stand-alone policies, as well as package insurance solutions for public and private companies that can help your organization protect against different types of fiduciary claims, including but not limited to:
Excessive fees
Lawsuits alleging that fiduciaries agreed to unreasonably high administrative costs and fees.
Prohibited transactions
Transactions between an employee benefit plan and certain individuals or entities that may give rise to engaging in self-dealing — acting in their own interest rather than the best interest of their clients.
Reporting requirements
The Employee Retirement Income Security Act of 1974 (ERISA) requires benefit plans to file annual public reports available to plan participants and beneficiaries.
Imprudent investment options
Lawsuits alleging fiduciaries failed to properly administer retirement plans because the investment options they offered to participants included some that purportedly underperformed other similar options.
Why choose Zurich for Fiduciary Liability coverage?
- Our dedicated and experienced management Fiduciary Liability underwriters understand fiduciary liability risks and help deliver solutions customized for the needs of our customers.
- Zurich’s integrated Claims model brings underwriting together with a Claims team dedicated to fiduciary liability for a seamless customer experience.
- With more than 100 years of experience in the U.S., Zurich Insurance Group’s financial ratings are consistently strong. See where our credit ratings stand currently here.
- Our international capabilities include an extensive global network of 210 countries and territories. We cover the locations where you do business today — and where you want to do business tomorrow. Zurich’s Fiduciary Liability Select policy can be structured as a global program through International Programs for Zurich for qualified customers who operate internationally. With one of the world’s largest global networks, Zurich can issue local admitted policies tied to a U.S. master policy to help reduce the risk of compliance issues and uncovered exposures.
- Customers enjoy tools and services like the My Zurich Portal, providing 24/7 access to program information, including claims and other program data, and Zurich Multinational Insurance Application (MIA), which helps companies achieve greater compliance for international programs.
News and Insights
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The 2024 SAMA Excellence Award recognizes Zurich’s global customer relationship management as outstanding, not only in the insurance sector, but across industries. It’s the second win for Zurich.
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Fiduciary Liability contact information
Frequently asked questions
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What is Fiduciary Liability Insurance?Fiduciary Liability Insurance is a critical component of a company’s risk management planning. It helps protect fiduciaries of public and private companies from claims arising from the creation and management of employee retirement, pension and health plans. Plan fiduciaries have a wide range of responsibilities and are required to act in the interest of plan participants and beneficiaries. These fiduciaries can be held personally liable for a breach of their duties in connection with their management of employer plans.
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What’s the difference between Fiduciary Liability Insurance and ERISA bonds?
ERISA fidelity bonds are required by law (the Employee Retirement Income Security Act of 1974, pursuant to ERISA Section 412) to help protect employee benefit plan participants and employees. They are required to be held by every fiduciary of an employee benefit plan, and every person who handles funds or other property of such a plan. Fiduciary Liability Insurance is not required by law, and it is intended specifically to help protect the fiduciaries of the business.
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How do you choose the right Fiduciary Liability Insurance policy?Fiduciary exposures can vary based on the type of plan, the plan size and the plan's governing documents. Working with an experienced broker can be the most efficient way to determine what fiduciary liability coverage and policy limits are needed for your business. Zurich is proud to have forged longstanding relationships with many of the most experienced brokers and other distributors who strive to understand these exposures and how they are evolving.
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Is fiduciary liability insurance the same as management liability insurance?No. Fiduciary Liability Insurance provides coverage for risks arising from the creation and management of employee benefit plans. Management Liability Insurance provides coverage for risks arising from the management of a business. It is important for every company to consider the need for both fiduciary insurance and management liability coverage.
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U.S. Department of Labor – Office of the Solicitor. “Division of Plan Benefits Security.” Accessed 03 October 2023.
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Katz, Michael. “No Plan Safe From ERISA Lawsuits, Chamber of Commerce Warns.” Chief Investment Officer. 2 September 2021.
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Zuss, Noah. “Law Firm Files Motion to Dismiss ERISA Complaint Targeting BlackRock Funds.” PLANSPONSOR. 12 October 2022.