Corporate Fiduciary Liability

Overview
Many fiduciaries are unaware of the personal financial risk they face in today's environment of never-ending litigation. Individuals who administer retirement, savings or other pension, profit sharing or welfare plans may be held personally liable for losses that arise in the course of their management duties. Employee benefit planners acting as fiduciaries face additional exposures that frequently result in costly claims and damaging lawsuits.

PIA's Corporate Fiduciary Liability policy is essential for all companies that sponsor single-employer plans. Coverage protects the Sponsor organization, the plans, as well as past, present or future directors, officers, employees or trustees who are functioning as fiduciaries, with discretionary authority over plan assets.

Types of businesses written include private and public companies, non-profit organizations, banks, municipalities, insurance agencies and companies. PIA does not write multi-employer collectively bargained plans (unions).

Policy Highlights:

• An insured has the choice of defending itself or having the insurer defend
• Definition of claim is amended to include fact-finding investigations by the Department of Labor, Pension Benefit Guaranty Corporation and similar agencies outside the U.S.
• Full severability with respect to warranties
• Automatic coverage for newly created or acquired plans - from the date of acquisition or creation to the end of the policy period, except for employee stock ownership plans (ESOPS)
• Includes foreign, terminated, merged or sold plans (when specifically named)
• Covers marital extension

PIA's program protects against Internal Revenue Service CAP penalties. It also includes a Health Insurance Portability and Accountability Act (HIPAA) endorsement, which confirms coverage for HIPAA violations committed, or alleged to have been committed, by the insureds, by endorsement.

A $5 million policy limit for Corporate Fiduciary Liability is available on either a primary or follow form excess basis. Policies are written through Houston Casualty Company or U.S. Specialty Company on both an admitted and surplus lines basis. Both insurance carriers are rated A+ by A. M. Best Company and AA by Standard & Poor's.

PIA's experienced team of professionals underwrites unique and complex risks, with full authority to quote, bind and issue every policy in-house. Submissions are accepted directly from any licensed broker.