Fiduciary Liability Insurance Coverage Considerations in Tobacco Surcharge Litigation

A growing wave of ERISA class actions challenging employer-sponsored tobacco-use surcharge programs is creating not only regulatory exposure, but also significant fiduciary liability insurance risk. By pleading these cases as breaches of fiduciary duty under ERISA Sections 404, 406 and 502(a), plaintiffs are positioning their claims squarely within the scope of ERISA fiduciary liability policies, triggering defense coverage, indemnity exposure, and raising complex questions about the... By: Pillsbury Winthrop Shaw Pittman LLP