Fiduciary: Labor Management Trusts

Some of your labor management trust clients are trustees for various employee benefit plans. You’ve made sure they have fiduciary liability coverage to protect their personal assets. Now ask yourself if their current fiduciary liability policy has the following features:

• Full severability
• Coverage for compliance fees, including VCR compliance fees, IRS audit CAP, walk-in closing agreement program, administrative policy regarding self-correction and tax sheltered annuity voluntary correction program fees
• No prior acts exclusion
• Coverage for 502(i), (l), and (c) fines
• Coverage for COBRA and HIPAA violations
• Marital estate coverage
• Elimination of recourse
• Bi-lateral discovery, including 30 days after policy termination, in which to elect the discovery period