Q. What kind of company should consider Fiduciary Liability Insurance?

A. Any corporation that offers its employees pensions and/ or welfare plans has ERISA exposures and should consider the purchase of Fiduciary liability Insurance. Fiduciary Liability Insurance provides protection from lawsuits by third parties against the Trustees, advisors, and the plans themselves.

Q. How often do Trustees get litigated?

A. Trustees have always had an exposure from litigation, however with the great increase in bankruptcies, mergers & Acquisitions, and weakening economy has brought increased allegations of ERISA violations and mismanagement. Recently, the industry has experience new large claim payments.

Q. Do D&O and Fiduciary liability overlap?

A. Some companies share overlapping 'directorships" between their corporate directors and senior management and the company's pension and welfare plans. Frequently large D&O litigation will also include ERISA violations and/or proceed with parallel litigation against the trustees of the pension plans. Many of the same events will affect both policies, such as mergers & acquisitions, and bankruptcies.

Q. Does the economy parallel fiduciary Liability litigation?

A. Although we are not aware of any published studies evidencing a direct relationship between our economy and increased litigation, experience has shown that the number and settlements of claims do increase during merger mania and financial difficulties.

Q. Does one need to be concern about 'continuity' when purchasing Fiduciary Liability insurance?

A. Continuity is one of the main issues when evaluating any purchase of a 'claims made' policy and Fiduciary liability is no exception. This can be better described by your ExecutivePerils broker.