Fiduciary Liability insurance protects fiduciaries and organizations from breach of duties imposed by ERISA and from negligence in the administration of employee benefit plans.
Coverage can apply to a wide variety of situation, but some common examples include:
- Administrative errors
- Failure to disclose
- Failure to enroll
Your organization and responsible fiduciaries may be held liable for loss of potential investment gains or loss of benefits (due to failure to enroll or disclose), in addition to any associated defense costs.
In a 2015 report by the Insurance Information Institute, it was shown that $1.5-4.7M was the average amount spent on defense and settlement expenses for Fiduciary Liability claims. If you or your business possesses a Fiduciary exposure, you may be surprised by the availability of competitive prices for this insurance coverage. Each policy may contain important coverage considerations, so it’s important to carefully review each policy detail and be sure it matches your needs.
When switching from one carrier to another, be sure the Retro date is matched by new carrier. Also, when initiating coverage, always try to obtain “full prior acts” coverage – this will ensure that any past activities are covered if they generate a claim later.
"Benefits Due" Exclusion
Fiduciary policies exclude benefits due, which mean if a life or health insurance carrier, for example, refuses payment of benefits (for any reason), then you are not covered for any alleged liability associated with your involvement from enrollment. Most policies do provide defense coverage and this is desirable.
Fiduciary Liability Insurance, clearly, won’t protect you from every type of exposure your business may face. As a result, there are other types of insurance designed to meet your entire needs.
Here are a few:
- Commercial General Liability
- Commercial Property
- Business Owners Policy
- Professional Liability
- Directors & Officers Liability
- Employment Practices Liability
- Business Auto Liability
- Workers Compensation
- Cyber Insurance
- Flood Insurance
- Commercial Umbrella
- Surety Bonds
>> LEARN ABOUT OTHER COMMERCIAL INSURANCE SOLUTIONS
Lets Reduce Your Rates and Improve Coverage
Most people don’t understand their unique risks or their insurance and are therefore buying the wrong coverage and paying too much. If you work with our insurance agency, we will implement our simple 3-step process to identify your key exposures, improve insurance coverage and reduce rates.