ACORD 802 (Fiduciary Liability Application)
An ACORD form for fiduciary liability insurance applications covering ERISA plan administration risks.
What It Is
The ACORD 802 is the application form for fiduciary liability insurance, which covers the personal liability of individuals who manage employee benefit plans governed by ERISA (Employee Retirement Income Security Act). The form captures information about the types of plans administered, plan assets, number of participants, fiduciary procedures, and claims history.
The form addresses both defined benefit and defined contribution plans, health and welfare plans, and any other ERISA-governed benefit programs. It asks about the plan's investment management structure, service provider selection process, and fee reasonableness review.
Fiduciary liability underwriting evaluates the quality of plan governance, and the ACORD 802 provides the structured framework for this assessment.
Why It Matters for Brokers
ERISA fiduciary claims have increased significantly, particularly related to excessive fee litigation and investment performance disputes. Brokers who handle fiduciary liability placements must understand ERISA requirements and help clients document their fiduciary practices accurately on the ACORD 802. Many employers are unaware of their personal liability as plan fiduciaries. Brokers who proactively recommend fiduciary liability coverage and help clients complete the ACORD 802 add significant value to the employee benefits relationship.
Real-World Example
A mid-size employer with a $45M 401(k) plan and 300 participants applies for fiduciary liability coverage. The broker completes the ACORD 802 documenting the investment committee structure, quarterly investment performance reviews, fee benchmarking with an independent consultant, and a formal investment policy statement. The thorough application results in a competitive quote with $3M limits.
Common Mistakes
- 1Not disclosing DOL audits or participant complaints on the ACORD 802, which are material underwriting factors.
- 2Failing to document the investment committee's governance practices, which is the primary risk factor underwriters evaluate.
- 3Underreporting plan assets, which directly affects the exposure base and can lead to inadequate limits.
How brokerageaudit.com Handles This
Submission Intake provides ERISA-specific guidance for the ACORD 802, including prompts for common fiduciary governance practices and automatic cross-referencing of plan asset information.