Running a benefit plan makes you a fiduciary.
Coverage for employers, owners and trustees against claims of mistakes in managing 401(k), retirement and health benefit plans.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Personal liability for plan decisions
Under ERISA, people who manage an employee benefit plan can be held personally liable for losses caused by mistakes, such as high fees, poor investment choices or late contributions.
The ERISA fidelity bond many plans must carry protects the plan against theft, not the fiduciaries against lawsuits. Fiduciary liability insurance covers the defense and settlement of those claims.
- Breach of dutyClaims of imprudent plan management.
- Administrative errorsEnrollment and contribution mistakes.
- Legal defenseDefense costs for covered claims.
- Personal assetsProtection for individual fiduciaries.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Plans: retirement, health or both.
- Assets: total plan assets.
- Participants: number of employees in the plan.
- Administration: outside administrator or advisor.
- Company stock: whether the plan holds it.
- History: any audits, complaints or claims.
Fiduciary liability insurance, answered
Isn't my ERISA bond enough?
No. The ERISA bond protects the plan from theft by people who handle it. Fiduciary liability protects fiduciaries from lawsuits over their decisions.
Does using a third-party administrator protect me?
It helps, but the employer and plan committee usually remain fiduciaries and can still be sued.
Is it expensive?
For most small and mid-size plans, fiduciary liability is modestly priced relative to the protection.
Can it be combined with D&O?
Often, as part of a management liability package.
Do you offer fiduciary liability insurance outside California?
Yes. Clients across the country send the same quote form. California policies are placed directly; outside California the request is handled together with a partner agency in your state, and the shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Send your plan details. I'll shop it.
Plan type, assets and participants are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
Tell me how to reach you. I’ll take it from there.
Takes about 30 seconds. I review every request personally and call you back, usually the same day.
(424) 552-4545Answered 24/7 · CA License #4348151
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Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.