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NCPERS Fiduciary Liability Insurance
Protection for Public Funds and their Trustees
Public fund trustees faithfully work, often as volunteers, to protect the retirement security of their fellow public servants. Nevertheless, they face significant personal liability for this service to their communities.
As advocates for public fund trustees, National Conference on Public Employee Retirement Systems (“NCPERS”) partnered with insurance experts Ullico Casualty Group Inc. (“Ullico Casualty”) and Arthur J. Gallagher Risk Management Services, Inc. (“AJG”) to help protect public funds against risk to fund assets and trustees’ own personal liability.
Highlights of the NCPERS Fiduciary Liability insurance program include a duty to defend coverage form with the policyholder’s right to select counsel, which allows insureds to work with their own defense attorneys.
Why do I need Fiduciary Liability Insurance?
There are common misconceptions that government plans are not bound to fiduciary rules like those governing private sector retirement plans and that they are fully protected by sovereign immunity, statutory indemnification or other governmental policies. However, there are many gaps in these perceived protections that may put plan assets and trustees’ personal assets in jeopardy.
If accused of a breach of fiduciary duty, public fund trustees may be held personally liable for any losses to the plan, in addition to funding their own defense costs.
Fiduciary Liability insurance protects trustees and other fiduciaries when they face claims of breach of fiduciary duty in their service as trustees.
Ullico Casualty offers Fiduciary Liability insurance through State National Insurance Company. State National has an A.M. Best rating of A (Excellent), financial size category VIII as of 3/1/2012. Ullico Casualty manages all policy underwriting, servicing and claims, as we have more than twenty-five years of experience serving benefit funds.
The NCPERS Fiduciary Liability insurance program is available through independent insurance agents and brokers. For more information on the program, including applications for coverage, please contact Craig Arneson, Vice President of Operations, Mae Palmer, Marketing Manager, or visit the NCPERS Fiduciary Liability Program contacts page.