If your company offers employee benefits packages, as most typically do, then you are held liable for mismanagement according to the Employee Retirement Income Security Act (ERISA). Mismanagement includes claims of negligence and actions that are not considered to be made in the best interest of those who take advantage of employee benefits. A fiduciary liability insurance policy protects businesses from mismanagement claims and liabilities associated with fiduciary roles.
Fiduciary Liability Insurance Coverage
By acquiring fiduciary liability insurance, the legal defense costs associated with error claims and fiduciary breaches are covered. This type of policy differs from other types of employer liability coverages as it is designed to protect the company and the employees against claims of fiduciary mismanagement and negligence.
Some of the most common claims include:
- Plan administration failure
- Lack of investment diversity
- Wrongful denial or changes in benefits
- Conflicts of interest
- Improper counsel
- Failure to monitor third party service providers
Who Should Acquire A Policy?
If your company offers any type of benefits, including health insurance, dental insurance, vision insurance or retirement plans, you should speak with a broker about acquiring a fiduciary liability insurance policy. Even start-up companies should consider looking into acquiring a policy, as most employers will eventually start offering benefits to their employees in order to stay competitive with other businesses vying for similar employees.
Speak With A Business Insurance Broker Today
Fiduciary liability claims can be quite costly and can potentially cripple your business. Avoid the risks and liabilities associated with offering employee benefits by acquiring a fiduciary liability insurance policy with Pro Insurance Group. For more information or to acquire a policy today, give Pro Insurance Group a call at 833.619.0770 or by requesting a quote online.