What Is Fiduciary Liability Insurance?
Fiduciary Liability insurance helps protect companies from claims of mismanagement and the legal liability related to serving as a fiduciary. If your company sponsors a retirement or health plan for employees, and if you are involved in any way with the management of that plan, you are likely considered a fiduciary. Under ERISA law, fiduciaries can be held personally liable for a breach of fiduciary duties. As a fiduciary, it is your job to select advisors and investments, minimize expenses and follow plan documents exactly. You have a duty to act solely in the interest of plan participants and beneficiaries - not the company. That is a lot of responsibility and it comes with potential liability that requires the right protection.
What Does Fiduciary Liability Insurance Cover?
For many employers, offering an employee benefit plan is a way to attract and retain workers. However, administering an employee benefit plan can present liability risks, including staggering litigation costs if your company is sued for errors or omissions in the administration of the plan. In addition, the individual fiduciary can be held personally liable and their assets may also be at risk if they do not carry out their obligations. That is why Fiduciary Liability coverage is important for the well-being of any company and its fiduciaries.
Travelers helps businesses understand Fiduciary Liability insurance.
Who Is Fiduciary Liability Insurance Right For?
• Financial Institutions
• Nonprofit Organizations
• Private Companies
• Public Companies
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