If you are an ERISA fiduciary, it's essential to consider fiduciary liability insurance to address the specific risks associated with your role.
Targeted coverage for a critical financial risk.
Fiduciary liability insurance addresses a highly specific and potentially severe financial risk: breaching fiduciary duties under the Employee Retirement Income Security Act (ERISA), which oversees numerous employee benefit plans.
- What is ERISA?
ERISA, or the Employee Retirement Income Security Act of 1974, was passed to increase the level of liability for fiduciaries in order to help protect those using employee benefits.
- What is a fiduciary?
Individuals, whether inside or outside your business, can serve as fiduciaries if they have authority over your employee benefits plan. This group may encompass accountants, administrators, consultants, investment advisors, managers, lawyers, and others.
Protects against breach of fiduciary duties.
Company officers overseeing employee benefit plans have fiduciary obligations, legally bound to act in the best interests of employees. Breaching this duty, even inadvertently, can lead to lawsuits. For instance, a decision leading to investment losses for a plan could constitute a breach.
Coverage for ERISA-related claims.
Under ERISA, fiduciaries can be held financially accountable for losses resulting from alleged errors or negligence, especially concerning retirement benefits. General liability policies typically exclude ERISA claims, making fiduciary liability insurance crucial to manage this risk.
Includes defense costs.
Fiduciary liability insurance covers defense expenses and potential liability payments. Policies may also provide access to legal experts specializing in ERISA matters. Tailor your coverage to ensure adequate protection against specific risks.
Explore fiduciary liability insurance options tailored to your business needs by contacting us for more information.