Fiduciary Liability Insurance

Fiduciary liability insurance, which pays legal defense costs, is necessary for any benefit fund because fund trustees are not immune from litigation. Without this insurance, trustees have no protection from errors and omissions in decision-making.

NYSUT Member Benefits Trust has endorsed a low-cost fiduciary liability insurance program. Premiums are $620 per policy year for a $500,000 policy limit or $977 per policy year for a $1 million policy limit. These rates are effective from September 1, 2008 through August 31, 2011. The plan provides an aggregate policy limit of $2 million per year and, effective with the 9/1/06 - 8/31/07 policy year, a HIPAA (Health Insurance Portability and Accountability Act of 1996) rider with an aggregate limit of $100,000. The policy year runs September 1 through August 31, and new and renewal applications are accepted each spring.

The NYSUT Member Benefits Trust Board of Trustees endorses St. Paul Travelers as the underwriter of its Fiduciary Liability Insurance Policy. Ninety-five of the 186 Benefit Funds associated with NYSUT locals throughout the state have purchased the endorsed Fiduciary Liability Insurance.

Contact Information:
For further information, please contact Member Benefits toll-free at (800) 626-8101, weekdays from 9 a.m. to 5 p.m. Eastern Time.