A type of coverage afforded by some fiduciary liability insurance policies,
although only by endorsement, rather than within the terms of standard policy
forms.
A settlor is a person who, in administering employee benefit programs, acts
with broad discretionary authority. In contrast, a fiduciary must act strictly
in accordance with the provisions of the Employee Retirement Income Security
Act (ERISA).
Recognizing that settlor and fiduciary acts, while legally different, are
nevertheless both closely related and functionally similar, a handful of
insurers has responded to the fact that fiduciary liability policies do not
cover the acts of settlors by offering endorsements to their policy forms that
affirmatively cover settlor acts.