What does Failure To Collect Contributions Exclusion mean? Read on to discover the definition & meaning of the term Failure To Collect Contributions Exclusion - to help you better understand the language used in insurance policies.
Failure To Collect Contributions Exclusion
A standard exclusion in fiduciary liability policies that precludes coverage for claims caused by a fiduciary's failure to collect contributions owed to a pension or benefit plan. The exposure most often arises in multiemployer, union-sponsored plans. However, because the collection of pension and benefit plan contributions from companies participating in a multiemployer plan is an activity within an insured's control, such claims are excluded because insurers do not intend to provide "financial guarantee insurance." Nevertheless, many of the forms do provide defense coverage to allegations that the insured(s) failed to collect contributions owed to a benefit plan.
We hope the you have a better understanding of the meaning of Failure To Collect Contributions Exclusion.