Fiduciary Liability Insurance

Fiduciary Liability Insurance for Management Liability Risks

In today’s complex business environment, organizations that manage employee benefit plans face unique fiduciary responsibilities that standard insurance policies may not fully address. At IAT Insurance Group, our Fiduciary Liability insurance is designed to meet these specific needs, providing protection for businesses and their fiduciaries against legal and financial risks associated with plan oversight.

What is Fiduciary Liability Insurance? 

Fiduciary Liability insurance protects organizations and their fiduciaries from claims involving breaches of duty, mismanagement, or failure to comply with regulatory requirements. Without proper coverage, organizations risk paying expensive legal fees, settlements, and judgments, which can threaten both finances and reputation. Fiduciary Liability insurance ensures your organization has the support needed to navigate these complex legal challenges.

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Management Liability
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Who Needs Fiduciary Liability Insurance

Any organization managing employee benefit plans should consider Fiduciary Liability insurance, including:

  • Financial Institutions
  • Nonprofit organizations
  • Private companies
  • Public companies
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Common Fiduciary Liability Risks

Fiduciary Liability insurance helps cover defense costs, settlements, and judgments related to the various risks organizations face when managing employee benefit plans, such as:

  • Errors in plan administration
  • Mismanagement of plan assets
  • Regulatory noncompliance
  • Breach of fiduciary duty

Types of Fiduciary Liability Coverage

Fiduciary Liability policies can be tailored to meet the specific needs of your organization, depending on the size of your employee benefit plans, assets under management, and the complexity of your organization’s operations.

Frequently Asked Questions

It covers claims alleging mismanagement, breaches of duty, or regulatory violations in managing employee benefit plans. This includes legal defense costs, settlements, and judgments.

Coverage depends on plan size, assets under management, and organizational risk. Typical coverage ranges from $1 million to $10 million or more.

Corporate executives, plan administrators, trustees, and committees responsible for managing employee benefit plans are commonly included.

While not always legally required, ERISA makes fiduciaries personally accountable for mismanagement, making insurance highly recommended.

Partner with IAT

As a wholesale broker, partnering with IAT Insurance Group means you have access to a team that understands the complexities of fiduciary responsibilities and employee benefit plan oversight. We provide the expertise and flexibility needed to design tailored Fiduciary Liability solutions that address your clients’ unique risks. By working with IAT, you help your clients secure comprehensive protection that adapts to evolving regulatory and financial exposures.