An endorsement to a fiduciary liability insurance policy that prevents an
insurer from exercising its subrogation rights against an insured fiduciary.
Premiums for this endorsement are based on a charge per covered fiduciary. Unlike
most other forms of insurance, under fiduciary liability policies, insurers
sometimes exercise subrogation rights against insureds for non-willful or criminal
acts. Insurers' rationale for subrogating against insureds is based upon the
fact that insureds should not be absolved of wrongdoing when the premiums for fiduciary
liability coverage are paid from the assets of the employee pension and welfare
plans the fiduciaries are charged with administering.
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