Fiduciary Liability

Protecting the company and plan administrators against damages and defense costs.

A look at the numbers

80%

Increase in the number of ERISA lawsuits from 2019 to 2020*

$500K

Average cost of defending a fiduciary claim**

50%

Percentage of fiduciary claims related to benefits disputes; the remainder of claims are related to administrative errors or miscommunications***

*Woodruff Sawyer: Protecting Against the ERISA Litigation Surge **Hall Benefits Law (2019) Fiduciary Legal Compliance: Avoiding Costly Fiduciary Breach Lawsuits ***NAPLIA (2007) Fiduciary Insurance: Understanding your Exposure

Built for small businesses

Thousands of small businesses use Counterpart’s insurance product offerings and risk management services to manage some of their most complicated risks

Technology

Example

Technology

State:

Missouri

Limit:

$1,000,000

Retention:

$0

Premium:

$841

Consulting

Example

Consulting

State:

Texas

Limit:

$1,000,000

Retention:

$0

Premium:

$706

Construction

Example

Construction

State:

Pennsylvania

Limit:

$1,000,000

Retention:

$0

Premium:

$1,030

Manufacturing

Example

Manufacturing

State:

Illinois

Limit:

$2,000,000

Retention:

$

Premium:

$644

Architects & Engineers

Example

Architects & Engineers

State:

California

Limit:

$1,000,000

Retention:

$0

Premium:

$627

Hospitality

Example

Hospitality

State:

Florida

Limit:

$500,000

Retention:

$0

Premium:

$890

Medical Practitioners & Outpatient Care

Example

Medical Practitioners & Outpatient Care

State:

California

Limit:

$1,000,000

Retention:

$0

Premium:

$1,397

We cover 300 + more industries

Across all 50 states

State:

Limit:

Retention:

Premium:

What is covered?

Negligent Act

Actual or alleged negligent acts, errors, or omissions by an Insured in administering an Employee Benefit Plan

Fines & Penalties

Punitive Damages and Civil Money Penalties Coverage for penalties assessed under HIPAA, the PPACA, Section 502(c) of ERISA, or Section 4975 of the Internal revenue Code where permitted by law

Voluntary Compliance Program Costs Coverage available

Coverage for Voluntary Compliance Programs administered by the Internal Revenue Service (IRS), Department of Labor (DOL), or other similar governmental authority to correct any inadvertent non-compliance by an Employee Benefit Plan

Administration of Benefit Plans

Actual or alleged negligent act, error, or omission by an Insured in the Administration of a Sponsored Plan

Settlor Liability

Included within Wrongful Act

Breach of Duty

Allegations of a failure to uphold your legal responsibilities in managing your benefit plans

+ Much more

And dozens of other coverages that are designed to help business grow with less risk

Download our full coverage & appetite guide

How we’re different

Others

Modular Forms

Quote multiple limits, retentions, and coverage options across all coverages

Others

Admitted & Surplus

More coverage options, from standard coverage to more unique, complex risks

Others

?

AM Best rating of A XV (Excellent)*

Underwritten by industry leaders with one of the strongest credit ratings from AM Best

Others

?

Risk assessment

Generate custom risk assessments with proprietary insights into the exposures your clients may face

Others

?

Multi-channel support

Get a quote in minutes, any where, and on any device via email, digital application, or API

Others

?

Underwriter on-call

Get support from underwriters with over >120 years of collective experience

Others

?

Counterpart Senior Risk Engineer, Jake O'Donnell

We’re behind you

Jake started his insurance career at Chubb/Westchester, where he underwrote D&O, EPL, Fiduciary, and Crime coverages for private company and not-for-profit companies. Jake holds a Masters from Temple University and a Bachelors from the University of Miami, where he also played football. Jake received his CPCU designation in 2021.

Jake O'Donnell
Senior Risk Engineer

Claims Examples

Retirement Plan Funding

Cost: $50,000-$100,000

Time to resolve:

6-12 months

Example

A group of unions sued their employers on the grounds that the employers had not properly calculated or made their contributions to the shared retirement plan for the union employees as required by the parties’ collective bargaining agreement. The unions also asserted that the employers had failed to provide them with accurate reports detailing the hours worked by each union employee and the associated amount of fringe benefit contributions owed. According to the complaint, the employers’ actions violated both the CBA and ERISA. The unions requested damages in the amount of the missing contributions, interest on those amounts, liquidated damages, attorneys’ fees, court costs, and a permanent injunction barring the employers from similar conduct in the future.

Breach of Fiduciary Duty

Cost: $250,000+

Time to resolve:

2+ years

Example

A retiree of a global manufacturer of household goods was shocked to discover that more than $750,000 had gone missing from their retirement accounts. Upon investigation, they learned the money had been stolen by a fraudster who managed to successfully impersonate the plaintiff on a phone call with the Plan Administrator and changed their online credentials. The plaintiff claimed the Plan Administrator didn't act with reasonable care, skill, prudence, and diligence to prevent the fraud. As relief, the plaintiff requested that they be awarded damages in the amount of their missing retirement funds, an amount of projected lost investment earnings, and the attorneys’ fees and costs.

Retirement Plan Administration

Cost: $100,000+

Time to resolve:

1-2 years

Example

After a staffing agency went bankrupt, its retirement plan administrator, who was also the agency’s former president, refused to distribute any Plan assets or accept new contributions. The Department of Labor stepped in and sued the administrator, claiming they had failed to discharge their legal obligations to Plan participants and beneficiaries. The Department asked the court to remove the administrator from their position, appoint a new Plan administrator, and order the former administrator to pay for all management fees or charges billed by the new administrator.

Retirement Plan Funding

Cost: $50,000-$100,000

Time to resolve:

6-12 months

Example

A group of unions sued their employers on the grounds that the employers had not properly calculated or made their contributions to the shared retirement plan for the union employees as required by the parties’ collective bargaining agreement. The unions also asserted that the employers had failed to provide them with accurate reports detailing the hours worked by each union employee and the associated amount of fringe benefit contributions owed. According to the complaint, the employers’ actions violated both the CBA and ERISA. The unions requested damages in the amount of the missing contributions, interest on those amounts, liquidated damages, attorneys’ fees, court costs, and a permanent injunction barring the employers from similar conduct in the future.

Breach of Fiduciary Duty

Cost: $250,000+

Time to resolve:

2+ years

Example

A retiree of a global manufacturer of household goods was shocked to discover that more than $750,000 had gone missing from their retirement accounts. Upon investigation, they learned the money had been stolen by a fraudster who managed to successfully impersonate the plaintiff on a phone call with the Plan Administrator and changed their online credentials. The plaintiff claimed the Plan Administrator didn't act with reasonable care, skill, prudence, and diligence to prevent the fraud. As relief, the plaintiff requested that they be awarded damages in the amount of their missing retirement funds, an amount of projected lost investment earnings, and the attorneys’ fees and costs.

Retirement Plan Administration

Cost: $100,000+

Time to resolve:

1-2 years

Example

After a staffing agency went bankrupt, its retirement plan administrator, who was also the agency’s former president, refused to distribute any Plan assets or accept new contributions. The Department of Labor stepped in and sued the administrator, claiming they had failed to discharge their legal obligations to Plan participants and beneficiaries. The Department asked the court to remove the administrator from their position, appoint a new Plan administrator, and order the former administrator to pay for all management fees or charges billed by the new administrator.

Retirement Plan Funding

Cost: $50,000-$100,000

Time to resolve:

6-12 months

Example

A group of unions sued their employers on the grounds that the employers had not properly calculated or made their contributions to the shared retirement plan for the union employees as required by the parties’ collective bargaining agreement. The unions also asserted that the employers had failed to provide them with accurate reports detailing the hours worked by each union employee and the associated amount of fringe benefit contributions owed. According to the complaint, the employers’ actions violated both the CBA and ERISA. The unions requested damages in the amount of the missing contributions, interest on those amounts, liquidated damages, attorneys’ fees, court costs, and a permanent injunction barring the employers from similar conduct in the future.

Other products

Private Directors & Officers

Protect the comapany's assets and your key management.

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Employment Practices

Protect your company employment-related lawsuits.

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Professional & General Liability

Protect the company against professional mistakes or unmet agreements with comprehensive liability coverage.

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Underwritten by the world’s leading insurance providers

Counterpart’s products are unwritten by Aspen Specialty Insurance Company (AM Best Rating of A XV*), Evanston Insurance Company, a Markel® Company (AM Best Rating of A XV*), and Westfield Specialty® (AM Best Rating of A XV*).