Fiduciary Liability Insurance for Multiemployer & Public Sector Benefit Plans
Overview
Protecting trustees and employees of multiemployer plans
Trustees of health, welfare, defined contribution, pension, and other benefit plans hold a significant and often complex role in managing these plans. The Employee Retirement Income Security Act of 1974 (ERISA) imposes extraordinary responsibilities on trustees of multiemployer plans. While governmental plans are not subject to ERISA, trustees of these plans must also be vigilant as state laws governing their conduct can be equally stringent. Fiduciary coverage for trustees of both ERISA plans and Non-ERISA plans is paramount due to the personal liability they face.
As a provider of specialized fiduciary liability insurance, Chubb developed the Multiemployer Plan Fiduciary Liability Policy to offer critical protection to multiemployer plans and their trustees and employees. The policy can also be tailored for Public Sector Plans to address their unique exposures as well.
Contact a Chubb Underwriter for further information.
Chubb offers specialized fiduciary liability insurance that can be customized to fit the unique needs of our insured plans.
Multiemployer Plan Fiduciary Liability Policy
Streamlined coverage with Insuring Clauses for Fiduciary Liability, Voluntary Compliance, and Interview Coverage
Definition of Wrongful acts includes acts, errors, or omissions in an Insured’s settlor capacity with respect to establishing, amending, terminating, funding, merging, or consolidating plans, in addition to breach of duty imposed by ERISA upon fiduciaries and errors in plan administration
Definition of Claim includes:
Pre-Claim Investigations (Insured’s option to report)
Benefit Claim Denials (Insured’s option to report)
Regulatory proceedings against an Insured Persons by an Enforcement Unit (SEC, DOJ, HHS)
Subpoena requests made upon Insured Persons
Definition of Loss includes:
Civil penalties, where insurable by law:
Health Insurance Portability and Accountability Act
Health Information Technology for Economic and Clinical Health Act
Patient Protection and Affordable Care Act
Employee Retirement Income Security Act Section 502(c)
Section 4975 of the Internal Revenue Code
Section 203 of the Bipartisan Budget Act
Compensatory damages
Punitive, exemplary, and multiplied damages, where insurable by law
Claimant attorney fees awarded by a court pursuant to Section 502(g) of ERISA
Pre-judgment and post-judgment interest
Reasonable fees and expenses of an independent fiduciary retained to review a proposed settlement of a covered claim
Duty to Defend policy includes built-in flexibility for Insured to select defense counsel on a majority of claims
No Hammer Clause
Non-cancellable by the Insurer (except for failure to pay premium)
Non-rescindable
Enhanced claim reporting
Other enhancements may be available by endorsement
Labor Management Trust Fiduciary Liability Policy
Coverage enhancements noted above as well as other enhancements may be available by endorsement on the Labor Management Trust Fiduciary Liability Policy Form 14-02-2265 (Ed. 3/97)
Loss Prevention
Loss Prevention
Law firms providing multiemployer loss prevention services
Groom Law Group
Groom Law Group, Chartered (“Groom”) is recognized as a preeminent law firm in the United States, including its retirement, health and welfare, and litigation practices. Since ERISA was enacted, Groom has counseled multiemployer plans on benefits-related matters and has defended such parties in class action litigation and represented them in Department of Labor investigations. Fast forward to today, Groom remains at the forefront in representing multiemployer plans in defending claims brought against plans and plan trustees or in DOL investigations, and works with plans and their trustees to create viable solutions to mitigate against litigation risk.
To help mitigate risk and avoid costly litigation, clients turn to Morgan Lewis. The sharp uptick in fiduciary litigation in recent years involves allegations of excessive fees and “imprudent” investments, and targets plans—both private and public—in all industries across the United States. With decades of experience and a deep, full-service bench of lawyers, our ERISA and employee benefits litigation teams provide practical solutions to handle alleged breaches of fiduciary duty related to 401(k) and 403(b) fees and investments, employee stock ownership plans, defined benefit plans, and other retirement plans.
With risk specialists and claims professionals operating in 54 countries around the world, we provide the service you need and can help you get back up and running just about wherever you may be.
Partnership that’s personal
We work to understand your business and where you’re headed so we can be proactive about meeting your needs. Whether your business is big or small, we invest in getting to know you, your team, and your customers. The goal: to help you see ahead, be ahead, and stay ahead.
Creative problem-solving
Insurance isn’t one-size-fits-all – and neither is our approach. Our playbook is always evolving because we’re always striving to help clients avoid risk in smarter ways. That means we bring the latest thinking and a fresh perspective to helping solve your risk challenges.
Expertise and financial strength
We’ve served clients and partnered with leading organizations for more than 200 years. Our longevity, expertise, and financial strength are the bedrock of our business. That’s why 95% of Fortune 1000 companies are Chubb insured.
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Multiemployer Plan Trustee Loss Prevention
What do fiduciaries need to know to support and enhance loss prevention efforts?
What does fiduciary liability insurance cover for multiemployer plans?
Refer to this Brochure if the insured is written on the Labor Management Trust Fiduciary Liability Policy (Form 14-02-2265)
