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managed care coverage endorsement

An endorsement to a fiduciary liability policy providing coverage for bodily injury (BI), property damage (PD), and personal injury (PI) when they result from administering managed care health plans. This endorsement is necessary because fiduciary liability policies usually exclude coverage for these perils. However, because managed care plans are subject to Employee Retirement Income Security Act (ERISA), such coverage is necessary. The two most common claims involving managed care plans allege (1) that the employer-sponsor of a managed healthcare plan negligently selected the managed healthcare plan provider, and (2) that the employer-sponsor of a managed healthcare plan wrongly denied or delayed medical benefits provided by the plan.

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