Fiduciary Liability Insurance

Fiduciary liability insurance covers individuals and organizations that manage employee benefit plans, including retirement plans, health insurance programs, and pension funds. Under the Employee Retirement Income Security Act (ERISA), fiduciaries are held to strict standards of care and can be personally liable for investment losses, administrative errors, or breaches of fiduciary duty. Common claims include imprudent investment selections, excessive plan fees, failure to diversify assets, and improper handling of benefit claims. While less common in standard COI compliance for construction and real estate, fiduciary liability becomes relevant when contracting with large service providers who manage benefits on behalf of the certificate holder's employees. Compliance platforms should support fiduciary liability as a configurable coverage line for vendor categories involving HR management, plan administration, or financial advisory services.