As I have noted in prior posts (most recently here), an important concern these days for insurance industry observers and commentators is “silent cyber” — that is, the coverage for cyber-related losses under traditional property and casualty insurance policies, as opposed to purpose-built cyber insurance policies. For example, in one recent case (discussed here), a court found coverage for cyber losses under a business owner’s policy. While the possibility for finding cyber coverage under several other types of coverage is frequently discussed, one line of coverage that is not frequently considered is fiduciary liability coverage. However, a recent lawsuit, in which a corporate benefits plan participant lost funds to a cyber thief, suggests a way in which a cyber loss potentially could trigger a fiduciary liability policy.
Continue Reading “Silent Cyber” and Fiduciary Liability Claims

Rhonda Prussack

The last couple of years have seen a wave of ERISA suits aimed at 401(k) plan sponsors and targeting plan fees. In the following guest post, Rhonda Prussack, Head of Fiduciary and Employment Practices Liability at Berkshire Hathaway Specialty Insurance, takes a look at this phenomenon and the factors behind it, as well as the fiduciary liability insurers’ reaction to these developments. I would like to thank Rhonda for allowing me to publish her article on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Rhonda’s guest post.
Continue Reading Guest Post: Surge in ERISA Fee Litigation