Fiduciary and Crime Insurance in Los Angeles
Fiduciary coverage protects you if you are accused of mismanaging an employee benefit plan. Crime coverage protects your money and property from theft, forgery, and fraud.
Fiduciary and crime at a glance
- Fiduciary covers
- Claims of mismanaging 401(k), health, and other benefit plans
- Crime covers
- Employee theft, forgery, and funds transfer fraud
- Who needs it
- Employers that sponsor benefit plans or handle client funds
- Not the same as
- An ERISA fidelity bond, which is required separately
- How it is written
- Stand-alone or as part of management liability
What fiduciary and crime insurance covers
Fiduciary and crime coverage protect two different things: the people who run your benefit plans, and the money your business holds.
ERISA fidelity bond
Required by federal law for most retirement plans, separate from fiduciary coverage.
Fiduciary liability
Covers claims that you mismanaged plan investments, fees, or administration.
Employee theft
Covers money or property stolen by employees.
Funds transfer fraud
Covers money lost to fraudulent payment instructions and social engineering.
Forgery and alteration
Covers losses from forged or altered checks and documents.
Client property
Covers theft of client money or property in your care.
What affects fiduciary and crime rates
Fiduciary pricing depends on the size and type of your benefit plans and how they are administered. Crime pricing depends on how many employees handle money and the controls you use.
Separating duties, reconciling accounts, and verifying payment changes by phone all lower risk and help with pricing.
Ways to lower your premium
- Separate who approves and who sends payments
- Verify payment changes by phone
- Reconcile bank accounts every month
- Review plan fees and investments with your advisor
- Bundle with D&O and EPLI in one package
What moves your rate
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Plan size
Larger plan assets raise fiduciary limits and price.
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Plan administration
Outside administrators and clear processes lower risk.
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Employees handling money
More hands on funds means more crime exposure.
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Internal controls
Dual approvals and reconciliations lower rates.
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Claims history
Past losses weigh heavily on renewal.
Fiduciary and crime questions
Don't see yours? Call (310) 751-5979 and ask.
Is fiduciary insurance the same as an ERISA bond?
No. An ERISA bond protects the plan from theft by people who handle it. Fiduciary insurance protects the fiduciaries from claims they mismanaged the plan.
Who is a fiduciary?
Anyone with discretion over a benefit plan, including owners, HR leaders, and plan committee members.
Does crime coverage include email payment fraud?
Many crime policies can include funds transfer fraud and social engineering coverage, often with a separate limit.
Do I need crime coverage if I trust my employees?
Employee theft often involves trusted people who have handled money for years before a loss is found. Crime coverage protects you if that happens.
Find out what you should be paying
Tell us about your plans and finances. We compare carriers and come back with real quotes, usually within 1-2 days.