Berkshire Hathaway Specialty Insurance is rolling out out insurance coverage to address exposures for executives and their companies regarding oversight of their employee benefit plans.
Dubbed Executive First Fiduciary Liability Insurance, the policy is designed to address the most current regulatory, litigation, and pension and welfare issues that could crop up for commercial and financial companies as well as their directors, officers and employees, Berkshire Hathaway said. It provides up to $100 million in capacity.
Among the policy’s features:
- A flexible defense agreement. Policyholders can choose how and who they want to handle their defense. While they must defend all claims (with defense costs advanced), the policy enables Berkshire Hathaway Specialty Insurance to tender claims defense if they prefer. As well, this provision gives policyholders the ability to use ERISA litigation defense attorneys as they face claims, if they choose to do so.
- Full “settlor” coverage. This provision does not require any kind of sublimit, and covers litigation connected to certain business decisions made regarding employee benefit plans. Also, it extends the Affordable Care Act “gap” coverage for no additional charge.
The insurance policy also relies on a broad definition of “plan,” Berkshire Hathaway said, and includes coverage for fines and penalties.
Source: Berkshire Hathaway Specialty Insurance