The issue

A big concern for the trustees was having enough financial resources to ensure core benefits for the plan participants. This meant that the trustees had to find fiduciary liability insurance that provided the proper amount of coverage without costing too much. Making matters even more complicated, the trustees discovered they were exposed to other risks after talking with the TPA.

The result

After careful consideration, the trustees asked for quotes for all three coverages: fiduciary liability, ERISA fidelity bond and cyber liability insurance. Further, they asked for coverage limits higher than the recommendation we provided based on our peer data. Using our proprietary database, it was clear that increased coverage levels were cost effective.

Once the COVID-19 pandemic hit, we made sure to keep the trustees — and all clients — informed about the increase in cyber threats, as many organizations had their employees working remotely. As the fund worked through the recent fiduciary liability renewal cycle, they asked about considering additional coverages, opening the way for adding increased social engineering fraud coverage (another unfortunate necessity with COVID-19) and property and casualty coverages.