Fiduciary Liability Coverage for Organizations and Private-Independent Schools
ISM’s Financial Liability Endorsement provides the broadest, state-of-the-art fiduciary liability coverage and the expertise nonprofits need to meet the new regulations.
The Fiduciary Liability Coverage Endorsement provides claims-made coverage for claims alleging:
- Breach of Fiduciary duty in the operation of a plan of the organization.
- Breach of Fiduciary Duty involves violation of duties and responsibilities established by ERISA.
- A wrongful act in the administration of any of the organization’s Employee Welfare Benefit Plans.
Administration of a plan includes:
- Counseling employees
- Interpreting and handling records
- Effecting enrollment or cancellation of employees.
Covered loss
- Compensatory damages, settlements, and defense costs.
- IRS penalties related to prohibited transactions, such as paying certain expenses out of plan assets and minor delinquent contributions.
Who Does the Endorsement Cover?
- Plan: any Employee Pension Benefit Plan identified in the proposal, except for multi-employer Plans or Trust as defined by ERISA.
- Welfare Benefit Plans:
- A government-mandated insurance program for workers’ compensation, unemployment, Social Security, and disability benefits; or
- An employee welfare benefit plan as defined by ERISA that provides benefits or services to Insured Persons.
- Past, present, and future Directors, Trustees, Officers, Employees, Volunteers, and Staff Members of the Organization who are Trustees of the Plan or Welfare Benefits Plans.
- All other natural persons who serve as a Trustee of the plan or Welfare Benefit Plans identified in the endorsement.
- Any subsequently created or acquired plan or Welfare Benefit Plans upon written notice to the Insurer.
We also offer a broader stand-alone Fiduciary policy. For more information, contact our Program Manager.
To learn more about how our Insurance Benefits can serve your organization, e-mail Andy Bobich, Specialty Liability Programs Manager, or call 302-656-4944 (ext. 361).