Fiduciary Liability Insurance
Employment Practices Liability (EPL) Insurance
A type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful termination, discrimination, sexual harassment and retaliation.

What is a Fiduciary?
A fiduciary is the person who exercises any discretionary authority or control over the management or administration of an employee benefit plan and its assets. As a fiduciary, you are held accountable to the high standard of a “prudent expert.” This requires you to make educated decisions to benefit your plan participants, as would be expected of expert (in the field investments, for example).
Under the Employee Retirement Income Security Act of 1974 (ERISA), fiduciaries can be held personally liable for losses to a benefit plan incurred as a result of their alleged errors or omissions or breach of their fiduciary duties. This means fiduciaries may be forced to pay for lawsuit defense costs, judgments and settlements out of their own pockets.
What does a Fiduciary Liability Insurance Policy cover?
Your policy covers defense and settlement costs for allegations of wrongful acts, which may include:
- Breach of ERISA fiduciary responsibilities
- Improper advice or counsel
- Negligent act, error or omission in the administration of any employee benefit plan
- Imprudent investment of assets
- Conflict of interest
- Incorrect benefit calculation
- Misleading representation
- Wrongful termination of plan
- Denial or change/reduction of benefits
- Failure to adequately fund a benefit program