Chubb has introduced the Multiemployer Plan Fiduciary Liability Policy, the third generation of this fiduciary liability product, which is specifically designed to
address the unique needs of multiemployer and multiple employer benefit plans, including Taft-Hartley funds. This policy protects these plans and their fiduciaries against allegations of breaches of the duties imposed by employee benefit laws, including the Employee Retirement Income Security Act of 1974 (ERISA) as well as alleged errors in plan administration. This policy can also be tailored to protect individuals who manage governmental plans. Chubb claims data and insights reveal that litigation against plans and trustees in recent years has been driven by a spectrum of allegations. These range from the imprudent investment of plan assets and administrative errors to plan document violations and conflicts of interest. Moreover, individual plan trustees can be held personally liable for breaching their fiduciary duty to prudently carry out their responsibilities to the plan and its participants. For multiemployer plans, this personal financial risk is significant given plans are not allowed to indemnify trustees against these claims and there is no plan sponsor to provide indemnification either. Thus, Multiemployer Plan Fiduciary Liability Coverage may be the only protection available to these individual fiduciaries. Key elements of Chubb's Multiemployer Plan Fiduciary Liability Policy include: Streamlined coverage with Insuring Clauses for fiduciary liability, voluntary compliance, and interview coverage. Definition of wrongful acts includes acts in an insured's settlor capacity, in addition to breach of duty imposed by employee benefit laws upon fiduciaries and errors in plan administration. Definition of claim includes pre-claim investigations, benefit claim denials, regulatory proceedings, subpoena requests upon insureds, and proceedings against insureds by enforcement units including the U.S. Securities and Exchange Commission, Department of Justice, and Department of Human and Health Services. Definition of loss includes a variety of civil penalties, where insurable by law. Backed by specialized underwriting and claims handling, Chubb's Multiemployer Plan Fiduciary Liability Policy provides individuals responsible for managing employee benefit plans with tailored insurance protection.