This important coverage is very often overlooked and confused with the fiduciary bonding requirements of the Pension Reform Act of 1974. Coverage is provided for legal liability arising from claims for alleged failure to prudently act within the meaning of the Pension Reform Act of 1974. The important persons insured are any trustee, officer or employee of the trust or employee benefit plan, the employer who is sole sponsor of a plan and any other individual or organization designated as a fiduciary.