Right of recourse provision

Term · Insurance and risk management · MLC-T-INS-002957

A fiduciary liability policy provision, driven by ERISA section 410, that preserves the insurer's right to recover from a fiduciary the amount it paid for a loss caused by that fiduciary's breach of duty. The statute lets a benefit plan buy fiduciary insurance only if the policy permits such recourse. When the sponsoring employer buys the policy instead of the plan, insurers commonly waive the right by endorsement.

Table 1. Record
Identifier	MLC-T-INS-002957
Field	Insurance and risk management
Subject	Management Liability

Record as JSON

{
  "id": "MLC-T-INS-002957",
  "term": "Right of recourse provision",
  "field": "Insurance and risk management",
  "definition": "A fiduciary liability policy provision, driven by ERISA section 410, that preserves the insurer's right to recover from a fiduciary the amount it paid for a loss caused by that fiduciary's breach of duty. The statute lets a benefit plan buy fiduciary insurance only if the policy permits such recourse. When the sponsoring employer buys the policy instead of the plan, insurers commonly waive the right by endorsement.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/right-of-recourse-provision/"
}

Record 2,998 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.