failure to collect contributions exclusion
A standard exclusion in fiduciary liability policies that precludes coverage
for claims caused by a fiduciary's failure to collect contributions owed to
a pension or benefit plan. The exposure most often arises in multiemployer,
union-sponsored plans. However, because the collection of pension and benefit
plan contributions from companies participating in a multiemployer plan is an
activity within an insured's control, such claims are excluded because insurers
do not intend to provide "financial guarantee insurance." Nevertheless, many
of the forms do provide defense coverage to allegations that the insured(s)
failed to collect contributions owed to a benefit plan.
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PLI XII.E