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Fiduciary Liability coverage for directors, officers, employees and employers who are alleged to have breached their fiduciary duty or made mistakes in the management or administration of employee retirement and benefit plans.

Features & Benefits

  • Triggers of Coverage - Broad & early triggers including regulatory fact-finding investigations where no wrongful act is alleged and statutory violations

  • Indemnification Uncertainty Eliminated - Early advancement of loss within the retention where the company and plan fail to indemnify insured persons for any reason

  • Settlor Capacity - Eliminates the gap (and/or complexity of determining which applies) between directors’ & officers’ insurance and fiduciary insurance by covering the company and individuals for business judgment type decisions with respect to a Plan

  • Disproven Allegation Protection - Does not allow recovery by the insurer of amounts previously paid if an allegation that triggered coverage is later disproven

  • Reporting Flexibility - Provides flexibility in reporting governmental fact-finding investigations1 and internal appeals of benefit denials2 – without the risk that failure to report might trigger a denial for late notice

  • Non-Rescindable Side A - Grants non-rescindable coverage for insured persons’ non-indemnified loss

  • Full Severability - Includes full severability of all exclusions for all insureds

  • Settlement Control - Gives insured the ability to effect a settlement which is within the retention without the insurer’s consent

  • Foreign Jurisdictions - Ensures that the most favourable terms and conditions from local AIG policies are applied to claims in foreign jurisdictions

  • Specialized Claims Support - In-house claims unit dedicated to managing employee benefit claims

  • E-Discovery Consulting - Up to $25,000 first-dollar coverage

1. Prior to incurring defence costs for which coverage is being sought or before the investigation becomes a litigated matter
2. Prior to any allegation of investment loss within a plan or prior to incurring defence costs for which coverage is being sought

Coverage

  • Fines & Penalties - Generous penalty coverage and protection when a plaintiff alleges violation of any applicable provincial employment standards legislation, the provisions of the Income Tax Act (Canada) applicable to pension, retirement or savings benefits, the Pension Benefits Standards Act, 1985 (Canada) and any similar provisions of any federal, provincial, territorial, municipal or local statutory law or common law of Canada

  • Voluntary Compliance - Covers fines, penalties, sanctions, fees, and expenses related to corrections of a plan voluntarily made to comply with a governmental voluntary compliance program, including costs related to the assessment or correction of a plan’s non-compliance

  • Vicarious Liability of Third Parties - Covers liability of the company or plan for acts of third party employees for whom the company is vicariously liable

  • Independent Review of Settlement - Covers fees of an independent fiduciary and his lawyer retained to review proposed settlement of a covered claim

  • No hammer clause or pollution exclusion