Chartis today introduced significant enhancements to the fiduciary liability solutions offered by its Financial Lines Division to its private company, not-for-profit and financial institution clients.
The Fiduciary Liability Insurance EdgeSM endorsement, when added to the Chartis insurers’ Private Edge Plus, Not for Profit Risk Protector® and Financial Institution Risk Protector policies, provides coverage to address the rapidly expanding exposures facing employee benefit plan sponsors and their directors, officers and employees.
The endorsement includes state-of-the-art coverage expansions. For example, by covering executives who are alleged to have acted as plan fiduciaries, but who are later proven to have been acting only in a business or “settlor” capacity, the new endorsement eliminates a potential Catch 22—that a successful defense could result in an executive losing coverage.
The endorsement also features flexible notice and reporting provisions for fact-finding government investigations and internal appeals of benefit denials, and provides broadened coverage for penalties, including those under the recently passed health care reform law.
“New regulations, recent court decisions and a struggling economy have left plan fiduciaries more susceptible to liability than ever,” said Rhonda Prussack, Executive Vice President and Product Manager of Fiduciary Liability Insurance at Chartis. “The Fiduciary Liability Insurance Edge endorsement provides cutting-edge coverage to address the growing risks they face today.”