Deal Point: A large multi-employer pension plan has experienced a funding crisis because of poor investment decisions made by the former trustees. The former trustees are under investigation by several regulatory agencies because of what is alleged to be their participation in a prohibited party-in-interest transaction. The designated new trustees are unwilling to serve as trustees because the fund is unable to procure Fiduciary Liability Insurance.

Transactional Insurance Solution: After reviewing the trustee’s plans for addressing the potential legal exposures faced during the turnaround, a customized Fiduciary Liability Insurance policy is provided for the new trustees.