Fiduciary Liability - $1M
What this clause says
Vendor shall maintain Fiduciary Liability insurance covering ERISA fiduciary duties with respect to employee benefit plans, with limits of not less than $1,000,000 per claim.
What this means in plain English
Fiduciary liability covers personal liability of plan fiduciaries (typically including the CEO, CFO, and HR leadership) for ERISA-governed employee benefit plan decisions. Distinct from D&O because the fiduciary exposure exists in a personal capacity beyond the corporate role.
What it means for a CDMO program
Most life-sciences operators with employee benefit plans carry $1M-$5M fiduciary, often bundled with EPLI. The exposure is small for most operators but the limits are inexpensive and the personal-liability protection is meaningful for the executive team.
How this evaluates
The Decoder applies these rules in order; the first match wins.
- fiduciary › limit is at least $1M → Compliant: Fiduciary meets $1M.
- fiduciary › limit is not set → Borderline: No fiduciary coverage indicated.
See this in your MSA
Map this clause against your sponsor MSA.
Run the DecoderRelated clauses
Common questions about this clause
- What is the difference between fiduciary liability and D&O insurance for a biotech with employee benefit plans?
- How much cyber liability does a CRO handling PHI typically carry?
- What types of insurance does a small life sciences company need?
- What insurance does a clinical lab need for laboratory-developed tests (LDTs)?
- How much does a sponsor MSA insurance review cost?