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Fiduciary Liability for Private Companies

The Employee Retirement Income Security Act of 1974 (“ERISA”) established strict standards of fiduciary conduct. As such, any fiduciary that breaches any responsibilities, obligations or duties imposed by ERISA may be personally liable to compensate the plan for any resulting losses. In today’s evolving legal environment, employees and plan fiduciaries are increasingly being held accountable for their actions in administering the benefit plans that are offered to employees. Specific to privately owned companies, Chubb developed the Fiduciary Liability Coverage Part of ForeFront Portfolio 3.0℠ to specifically address the unique exposures faced by plan fiduciaries.


Coverage Highlights



  • Unparalleled claim expertise – Chubb has four decades of experience in handling fiduciary claims
  • Continued financial stability as one of A.M. Best Company’s elite highest-ranking insurers
  • Local underwriters and claims examiners with industry and state specific legal expertise
  • Covers ERISA and non-ERISA employee benefit plans
  • Worldwide coverage to the fullest extent permitted by law
  • Access to loss prevention resources



  • Responds to allegations including:
    • Wrongful denial or improper change in benefits
    • Error or omission in plan administration
    • Improper advice or counsel
    • Failure to administer the plan according to plan documents
    • Conflicts of interest and prohibited transactions
    • Imprudent investment of assets or lack of investment diversity
    • Imprudent selection and failure to monitor third-party service providers
  • Automatic coverage for most newly created or acquired plans
  • Expanded coverage triggers for pre-claim investigations, interviews and tolling requests may be available for qualified risks
  • Coverage for certain penalties and fees levied by the DOL and IRS under a voluntary settlement program, as well as for attendant legal expenses
  • Broad definition of ERISA includes equivalent laws established anywhere in the world
  • Expanded definition of Loss includes many fines and penalties assessed under ERISA and similar laws
  • Broad definition of Wrongful Act including acts, errors or omissions in an Insured’s settlor capacity available for qualified risks
  • Potential access to some of the broadest inquiry coverage available on the market, including Interview Coverage for defense costs incurred by an Insured Person when contacted by an Enforcement Unit
  • Broad definition of Insured Person includes trustees, directors, officers and employees
  • Advancement of defense costs if the organization refuses in writing to indemnify or fails to do so within 60 days of the Insured Person’s written request for indemnification may be available

ForeFront Portfolio 3.0℠

Privately owned companies and their fiduciaries can be sued by a host of parties and plan fiduciaries may find themselves being held personally liable. Chubb has taken broad coverage to the next level with our Fiduciary Liability Enhancement Endorsement for ForeFront Portfolio 3.0.

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Want More Information?

Download Chubb’s Fiduciary Liability educational materials to find out more about industry trends, loss scenarios, and frequently asked questions.