It also covers the defense costs in connection with a covered claim. The policy is written on a claims made form. It is any person so named in the plan or any person who exercises any discretionary authority or control with respect to the management or administration of the plan or its assets. Pension Benefit Guarantee Corp. The sponsor corporation as well as the individual fiduciaries are at risk. It includes any plan, fund, or program established or maintained for the purpose of providing employee benefits to its participants or beneficiaries.
Most fiduciaries are unaware of their personal financial risk or that of the sponsor organization.
Fiduciary liability coverage provides one way of reducing the risk and providing protection for the sponsor organization and individual fiduciaries.