Law firms expecting coverage for Employment Retirement Income Security (ERISA) find policy exclusions instead. The attorney malpractice policy does not cover fiduciary ERSA exposures. This is the typical exclusion section wording:
“any claim involving any Insured’s activities and/or capacity as a fiduciary under the Employee Retirement Income Security Act of 1974, its amendments, and any regulation or order issued pursuant thereto, except if an Insured is deemed to be a fiduciary solely because of legal advice that was or should have been rendered with respect to an employee benefit plan;”
If the firm needs fiduciary coverage it should obtain a specific policy for this. If an attorney has a SERIES 6 or 7 license, these professional services are not professional services normally provided by an attorney and there is no coverage in your attorney malpractice policy.
As an aside, the attorney malpractice insurance policy does not meet the ERISA requirements for firm’s ERISA plans that require an ERISA bond. A bond is not an insurance policy. ERISA bonds are relatively inexpensive, and your L Squared Insurance agent would be happy to obtain this coverage for you.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080