Fiduciary Liability Insurance

What is Fiduciary Liability Insurance?

AIG designed its Fiduciary Liability coverage specifically for directors, officers, fiduciaries, administrators, employees, and employers who are alleged to have breached their fiduciary duty or mismanaged employee retirement and benefit plans.

Why does your organization need AIG Fiduciary Liability Insurance Edge coverage?

  • A benefit plan committee is alleged to have inadequately monitored service providers resulting in claims for poor performance
  • A pension plan administrator made an administrative error when completing pension documents
  • A pension plan fiduciary is alleged to have breached its fiduciary duty by not complying with government pension legislation and regulations

What does AIG Fiduciary Liability Insurance Edge cover?

From coverage for fines and penalties for violating employment standards, to coverages for fees related to complying with required plan corrections, AIG’s comprehensive Fiduciary Liability Insurance Edge helps cover:

  • Fines and Penalties - Generous penalty coverage and protection when a plaintiff alleges violation of any applicable provincial employment standards legislation
  • 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
  • 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 the lawyer retained to review proposed settlement of a covered claim

Important information about COVID-19

The AIG Advantage

  • Triggers of Coverage - Broad and early triggers
  • No hammer clause or pollution exclusion
  • 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 between directors’ and officers’ insurance and fiduciary insurance
  • Disproven Allegation Protection
  • Non-Rescindable Side A
  • Full Severability - Includes full severability of all exclusions for all insureds
  • Foreign Jurisdictions - Ensures that the most favourable terms and conditions from local AIG policies are applied to claims in foreign jurisdictions

 

Related Products

Financial Institutions Insurance

Financial Institutions Insurance comprises a suite of insurance products developed for the financial industry. Our unique program of products and services help to ensure coverage gaps are proactively identified and mitigated. AIG’s Financial Institutions team collaborates across underwriting, risk consulting, and claims to help understand each client’s risks, intent, and coverages, so that the policies designed are timely and specific to each client’s needs. AIG’s presence and stability through market fluctuations helps earn our Financial Institutions clients’ trust, while we continue to provide exceptional service.

Learn more about AIG’s Financial Institution products.

Private and Not for Profit D&O Insurance

Through its market presence, research, and product ingenuity, AIG develops unique liability solutions to help private companies, financial institutions, and non-profit entities successfully embrace their opportunities. With AIG’s PortfolioSelect, clients receive a state-of-the art modular policy form designed to combine several customized liability insurance coverages. Conveniently delivered in one policy, AIG’s PortfolioSelect enables clients to pursue their opportunities for growth, research, investment, and innovation with peace of mind.

Learn more about PortfolioSelect.