In 1974 the ERISA act was created in response to the rampant fraud in the unregulated pension industry. Since that time there have been many amendments to this act, furthering the protection of pension, retirement and benefit plans of American employees.
A business exposure, the D&O policy was not designed to deal with the intricate risk associated with the administration and management of these plans. Fiduciary liability insurance was developed to protect the Insured against claims arising from their negligence in plan sponsorship and/or administration and violations or non-compliance with ERISA.
The coverage is written for private, public and nonprofit entities provided they have a defined fiduciary responsibility for benefit plans governed under the ERISA act.
This coverage can be written with the D&O policy as a part of a portfolio of management liability coverages, or it can be written on a monoline basis.