Chubb introduces fiduciary solutions for multiemployer plans
The Multiemployer Plan Fiduciary Liability Policy covers employee benefit plans and their fiduciaries
WHITEHOUSE STATION, N.J., Nov. 15, 2022 /PRNewswire/ -- 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.
"Trustees of health, welfare, defined contribution, pensions, and other employee benefit plans must be extra vigilant, especially in today's litigious environment," said Roy Tyson, Vice President, Multiemployer/Public Sector Plan Segment Leader, North America Financial Lines, Chubb. "To demonstrate the rationale for their decisions, plan trustees must document and implement a very thorough process for managing plan assets. Chubb has been protecting individuals from the personal liability they face as fiduciaries for over four decades, and we take great pride in our ongoing commitment to this unique market space."
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.
For complete coverage highlights and to learn more about the key features of the Multiemployer Plan Fiduciary Liability Policy, click here. To learn more about the importance of the Multiemployer Plan Fiduciary Liability Policy for Public Sector Plans, click here. To learn more about Fiduciary Liability Insurance, click here.
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. As an underwriting company, we assess, assume, and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris, and other locations, and employs approximately 34,000 people worldwide. Additional information can be found at: www.chubb.com