Fiduciary hub

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:
  1. A government-mandated insurance program for workers’ compensation, unemployment, Social Security, and disability benefits; or
  2. 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).