The new policy offers features including coverage for claims made against an insured person solely because they happen to be a plan fiduciary.
PRODUCT: The Chubb PrimarySM Fiduciary Liability Insurance
COMPANIES: Federal Insurance Company, Chubb Insurance Company of New Jersey (New Jersey domiciled risks only) and Chubb Custom Insurance Company (surplus lines only)
BEST RATING: A++
AVAILABILITY: Available to appointed agents and brokers only.
FOCUS: The fiduciary product was built around the fact that fiduciaries of employee benefit plans are increasingly being held accountable for issues that may occur in managing or administering their plans and plan investments. The product's intent is to help companies address liability in this litigious environment.
“Chubb has extensive experience in fiduciary liability insurance and has been providing coverage in this space for decades," says Alison Martin, senior vice president, Chubb. “This is a new product that offers greater breadth and flexibility in coverage. It incorporates policy terms that are often requested by customers and provides them with greater discretion as to when to trigger certain coverages. We've also added new, innovative coverages."
COVERAGE DETAILS: The Chubb Primary Fiduciary Liability Insurance policy is designed to be comprehensive by incorporating a vast number of coverage features.
The policy includes coverage for: written demands, complaints and formal investigations involving alleged breaches of fiduciary duty under the Employee Retirement Income Security Act, and errors in plan administration, including coverage for claims made against an insured person solely because they happen to be a plan fiduciary.
In addition to more flexible reporting and defense provisions, the policy includes a number of frequently requested terms and conditions, including non-rescindable coverage, so the policy cannot be rescinded based on irregularities in the application process.
The policy also includes two new-to-the-market coverages: a penalty suite additional sublimit of liability, which provides an additional sublimit for certain penalties within the policy limits; and failure to enroll demand coverage, which covers plan enrollment errors where the injured party has not filed a formal claim, empowering policyholders to resolve such situations.
UNDERWRITING: The necessary underwriting information is set forth in the fiduciary product's application. Pricing varies based on the plan asset size and the specific plan characteristics.
TARGET: All publicly traded companies and most financial institutions.
COVERAGE AVAILABILITY: Coverage is available to customers domiciled in the U.S., and the policy applies anywhere in the world. The product has been filed on a countrywide basis in most states and will be available as individual states approve. All products may not be available in all states. Coverage is subject to the language of the policies as actually issued.
CONTACT: Alison Martin, senior vice president, Chubb.
Will Jones is IA editor-in-chief.