Berkshire Hathaway Specialty Offers Fiduciary Liability Product

Boston-based Berkshire Hathaway Specialty Insurance (BHSI) has launched Executive First Fiduciary Liability Insurance, a new addition to its Executive First suite of executive liability insurance products offering customizable coverage for commercial and financial firms.

The product will provide enhanced protection for the fiduciary liability exposures executives and companies may face in connection with oversight of their organization’s employee benefit plans. Up to $100 million in capacity is available.

It features a flexible defense agreement that gives policyholders the choice how they want — and who they want — to drive their defense. Insureds have the duty to defend all claims (with defense costs advanced), but can tender claims defense to BHSI if they prefer; additionally, a roster of highly sought ERISA litigation defense attorneys will be available to policyholders facing claims, but their use is not obligatory.

The policy also provides full settlor coverage (with no sublimit) for litigation stemming from certain business decisions made about employee benefit plans, and extends Affordable Care Act gap coverage for no additional premium. Additional highlights include a broad definition of “plan,” and expansive fines and penalties coverage.

BHSI announced in July it would enter the fiduciary liability market and named Rhonda Prussack as vice president, Fiduciary Liability, to lead the effort.