The largest trade association of public-sector retirement funds endorsed a Washington, D.C.-based insurer’s fiduciary liability insurance program for its members.

The board of the National Conference on Public Employee Retirement Systems (NCPERS) unanimously endorsed Ullico Casualty Group’s program, written on Hudson Insurance Co. paper.

The members of NCPERS manage about $3 trillion in pension assets in trust in more than 500 public sector funds, benefiting about 21 million public sector employees and retirees.

The program is available through independent insurance agents and brokers. The program is expected to launch in the fourth quarter for policies beginning with Jan. 1, 2012, effective dates.

“Through our collaboration with NCPERS, we can protect the personal liability of more public fund trustees through customized insurance coverage specifically for NCPERS members. This protection helps trustees focus on their important work of providing benefits to hard working police officers, firefighters, teachers and other public servants,” said Ullico CEO Edward M. Smith in a statement.

Highlights of the NCPERS fiduciary liability insurance program include a duty to defend provision with the policyholder’s right to select counsel, which allows the policyholder to work with their own defense attorneys.

Arthur J. Gallagher Risk Management Services will continue to provide risk management products and services to NCPERS members, including the new program,, and maintains a longstanding partnership with the trade association.

Ullico is a $5.6 billion insurance and financial services holding company whose subsidiary companies include The Union Labor Life Insurance Co., Ullico Investment Advisors, Ullico Investment Co., Ullico Casualty Co., and Ullico Casualty Group.