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Protecting the assets of Plan Fiduciaries

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Fiduciary Liability Insurance

 

Companies generally create employee benefit plans to help attract and retain quality employees.  However, you may not be aware of the liability exposure created from the management of these plans.  Or, that utilizing a third-party plan administrator (TPA) does not eliminate this exposure.

 

Even more concerning is that as a fiduciary (trustee) of your companies Retirement Plan, or Welfare Plan (including medical, dental, life and disability), ERISA makes you personally liable. 

 

See what plans are subject to ERISA

What is Fiduciary Liability Insurance?

  • Fiduciary Liability Insurance pays, on behalf of the insured, the legal liability arising from claims for alleged failure to act prudently.
  • Fiduciary Liability Insurance protects the personal assets of a plan fiduciary due to allegations of breach of fiduciary duties.
  • ERISA explicitly allows for the purchase of fiduciary liability insurance.  And, it could potentially be a breach of fiduciary duty if a claim arises and no insurance is in place that was readily available.