Arch Insurance Group Enhances Its Fiduciary Liability Coverage

NEW YORK--(BUSINESS WIRE)--Arch Insurance Group, a member of Arch Capital Group Ltd., recently announced that it has made enhancements to its fiduciary coverage.

“Therefore, a responsible risk management plan today will include specific fiduciary coverage.”

As the management of employee benefit plans receives greater scrutiny than ever before and fiduciary liability claims balloon in both frequency and severity, companies need to examine their exposures and ensure that they are sufficiently protected.

The most common claims against fiduciaries involve issues such as:

• Improper advice
• Inappropriate selection of advisors or service providers
• Imprudent investments
• Breach of fiduciary duties imposed by ERISA
• Conflict of interest with regard to investments
• Negligence in the administration of a plan

Arch Insurance Group has enhanced its fiduciary liability coverage to help companies achieve the right level of protection. Key coverage features include:

• Duty to defend policy with an option for the insured to assume defense
• No panel counsel
• Coverage of claims against insureds for wrongful acts by other persons when the insureds are legally responsible for such acts
• Automatic Voluntary Settlement Program and HIPAA coverage (subject to sub-limits)
• Broad severability
• Non-cancellable policy (other than premium nonpayment)

“Customers need to realize that, under ERISA, individual fiduciaries can be held personally liable for any breach of their responsibilities in managing employee benefit plans,” said Joseph O’Donnell, EVP-Executive Assurance division at Arch Insurance Group. “Therefore, a responsible risk management plan today will include specific fiduciary coverage.”

Arch Insurance Group Inc. is a member of Arch Capital Group Ltd., a Bermuda-based company that provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries. For more information, visit www.archinsurance.com.

Insurance coverage is underwritten by one or more member companies of Arch Insurance Group in North America, which consists of Arch Insurance Company (a MO corporation, NAIC # 11150), Arch Specialty Insurance Company (a NE corporation, NAIC #21199) and Arch Excess & Surplus Insurance Company (a NE corporation, NAIC # 10946). Executive offices are located at One Liberty Plaza in New York City 10006. Not all insurance coverages or products are available in all jurisdictions. Coverage is subject to actual policy language. This information is intended for use by licensed insurance producers.