Berkshire Hathaway Specialty Insurance (BHSI) has introduced fiduciary liability insurance in the United States.
The policy provides broad protection for the fiduciary liability exposures that executives and companies face in connection with oversight of their organization’s employee benefits plans.
“Our Executive First Fiduciary Liability policy addresses the most current regulatory, litigation, and pension and welfare issues facing large commercial and financial companies, their directors, officers and employees—and gives companies the flexibility they want in defending claims,” says Dan Fortin, senior vice-president, executive and professional lines, with BHSI.
The policy features a flexible defence agreement, which gives policyholders the freedom to choose how they want—and who they want—to drive their defence.
Insureds have the duty to defend all claims (with defence costs advanced) but can tender claims defence to BHSI if they prefer. A roster of highly sought ERISA litigation defence attorneys will be available to policyholders facing claims, but their use is not obligatory.
The policy also provides full settlor coverage (with no sub-limit) for litigation stemming from certain business decisions made about employee benefits plans, and extends Affordable Care Act gap coverage for no additional premium. Additional highlights include a broad definition of plan and expansive fines and penalties coverage.