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Fiduciary Insurance is considered 1st Party coverage and may only be purchased by the named fiduciaries of a company ERISA Plan.  Third parties (TPA's, Investment Advisors) who may be providing services as a fiduciary to the plan should obtain Errors & Omissions insurance for their exposure.

ERISA requires that a fiduciary of an employee benefit plan act solely in the best interest of participants and beneficiaries.  Fiduciaries can be held personally liable for any breach of their responsibilities. 

Recent studies indicate significant increases in claims severity and frequency over the past several years.

• The frequency of claims against fiduciaries increased threefold during the early 1990's.  Plan fiduciaries now surpass the medical profession as a target of litigation.
• The average claim has surpassed $800,000 - up from $700,000 just five years earlier.  Defense costs during this same period rose 471%
• More than 90% of the claims are filed by plan participants.  Unions, government agencies, and other entities make up the remainder.
• Nearly 50% of the claims arise out of benefit disputes.  Other issues that may give rise to legal action include administrative errors and deficiencies in the communication of participant benefits.