Frequently Asked Questions

Will I need special fiduciary insurance (E&O coverage) for the liability imposed under the DOL rule?

Jan 9, 2017, 14:50 PM
While ERISA does not require fiduciaries to hold any particular type of insurance coverage, anyone who will become a fiduciary under the DOL rule should consider obtaining fiduciary liability insurance. Some firms hold fiduciary liability coverage for their advisors, so you should check with your firm to find out if you already covered.

If your firm does not provide this type of coverage for you, you should consider purchasing your own fiduciary liability policy. Given the specialized nature of this type of coverage, it would be advisable to consult with a broker who has experience and expertise dealing with ERISA fiduciary liability.

In either case, make sure you understand the coverage limits and exclusions associated with this type of coverage. For example, certain policies may limit coverage to the amount of any applicable surrender charges.