What is the difference between Employee Benefits Liability Coverage and a Fiduciary Bond?
The Employee Benefits Liability policy was designed primarily for a variety of benefit plans to provide coverage for administrative errors and omissions. The Fiduciary Bond policy was designed to cover a fiduciary’s ERISA (Employee Retirement Income Security Act) exposures that are caused by a “wrongful act.” Fiduciary coverage responds to claims for damages arising out of improper investments as well as plan and employee advice.
