Fiduciary Liability Exposures and Insurance: Expanding Risks and Available Coverage Options

Fiduciary liability coverage is the third and crucial leg of the management liability "stool." With each year, the exposures confronted by fiduciaries are becoming more diverse, complex, and costly. Indeed, the risks associated with 401(k) and managed health care plans, represent just the tip of the iceberg. And if this weren’t enough, the new Patient Protection and Affordable Care Act (PPACA) of 2010, imposes minimum standards for health care plans offered by employer-fiduciaries, as well as penalties for failing to comply with those standards.

Sept 27, 2011
1:00 p.m. Eastern time

To Purchase

The regular price for non-subscribers is $79 per webinar. However, subscribers and authorized users of IRMI reference services (on either IRMI Online or ReferenceConnect) pay only $9.99 per webinar!

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• Non-subscribers

Webinar-at-a-Glance

Using the expertise developed during his 35 years in the insurance business—including experience as an assistant risk manager at two Fortune 500 companies and as a consultant at a Big Four accounting firm—IRMI Senior Research Analyst Bob Bregman, CPCU, MLIS, RPLU, provides an intensive primer on fiduciary liability exposures and insurance coverage.

The webinar begins by explaining how passage of the Employee Retirement Income Security Act of 1974 (ERISA) created the need for fiduciary liability coverage. Next, it points out the major sources of claims against fiduciaries. Then, it goes on to examine the underwriting, loss control, and coverage coordination considerations associated with fiduciary liability. The final segment of the webinar offers an in-depth look at fiduciary liability policy forms, including the the different coverage formats available, little-known but important coverage extensions, and the most frequent gaps in the policies and how to close them.

Who Should Consider Purchasing

Anyone faced with the responsibilities and challenges of identifying and covering fiduciary liability exposures—whether as an agent/broker, underwriter, or risk manager—is certain to benefit from this webinar.

Agents and brokers can acquire the knowledge to identify a client’s fiduciary exposures, provide advice on how to reduce them, and craft the broadest possible policy to cover the risks that cannot be eliminated. Insurance company underwriters can obtain valuable insights into the nuances of fiduciary forms and, in the process, will be able to design policies that compete effectively with competitors and are easier for their producers to sell. Risk managers will acquire the knowledge to convince their organizations’ senior management about the necessity of fiduciary coverage, along with the information required to negotiate more effectively in broadening policy terms and conditions.

Benefits to Your Participation

Attendees will emerge from this Webinar with a better understanding of (1) what, exactly, is covered by—and excluded from—fiduciary liability policies, (2) no-cost and low-cost ways to minimize the risks of fiduciary claims, (3) the essential underwriting considerations on which the policies are based, and (4) how to obtain the best possible coverage for exposures that cannot be eliminated. Here is a thumbnail sketch of the highlights addressed in this Webinar:

• The single common characteristic shared by companies who get sued in conjunction with 401(k) plans
• The two types of benefit plans to which ERISA applies—as well as the various types to which it does not
• How to negotiate modifications of critical exclusionary wording found in fiduciary liability policy forms
• The differences between fiduciary liability and employee benefits liability—and why they matter
• The expanding risks posed by fiduciary liability class action claims
• The nature of the exposure to fiduciaries that the Patient Protection and Affordable Care Act (PPACA) of 2010 has created—and how to cover it
• The perils of “ERISA Tagalong” endorsements and how to reduce their impact
• Why directors & officers, with no explicit responsibility for managing employee benefit plans, still have a fiduciary liability exposure

Continuing Education Credit Information

Attending any three Management Liability Insurance Webinars will satisfy the annual reaccreditation requirement for the MLIS® program. CPCUs attending this webinar will be awarded one (1) CPD (continuing professional development) program point.

This webinar has not been filed for and will not satisfy state insurance CE requirements in any state. It has also not been filed for CLE or CPE credit, but you may be able to self-file after attending the program.