Fiduciary Insurance Coverage for Plan Amendments and Other Non-Fiduciary Functions

Two recent cases underscore a recurring fiduciary liability insurance gap for trustees of multiemployer benefit plans:  they perform many functions in their capacities as trustees that, like plan amendments, are normally handled by a plan sponsor.  But these settlor functions may not be covered under standard fiduciary policies.  Indeed, the standard fiduciary liability insurance policy only covers fiduciary actions.  Trustees thus need insurance coverage for more than just claims relating to fiduciary activities.