Also known as: fiduciary liability · fiduciary insurance · ERISA fiduciary coverage
Coverage that protects the people who manage a company's employee benefit plans from personal liability for how those plans are administered.
Fiduciary Liability insurance protects a company and the individuals who administer its employee benefit plans, such as a 401(k) or health plan, against claims that they breached their fiduciary duties under ERISA. Because plan fiduciaries can be held personally liable for imprudent investment choices, excessive fees, or administrative errors, this coverage pays defense costs and settlements. It is a sibling to D&O within the management-liability family and becomes relevant as soon as a startup offers a retirement or benefits plan.
Fiduciary liability insurance protects the people who manage a company's employee benefit plans (like a 401(k)) from personal liability for how those plans are run. Under ERISA, plan fiduciaries can be sued personally for imprudent decisions, excessive fees, or errors. This coverage pays their defense and any settlement.
No. An ERISA fidelity bond is a legally required bond that protects the plan against theft of its assets. Fiduciary liability insurance is optional coverage that protects the fiduciaries themselves against claims that they breached their duties. Many companies carry both.
As soon as you sponsor an employee benefit plan such as a 401(k), you have fiduciaries who can be held personally liable. Startups typically add fiduciary coverage alongside D&O and EPLI once they roll out retirement or health benefits.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.