Fiduciary Liability Insurance

Protection for Benefits Plan Managers.


To employers, excellent benefits, like pension plans, retirement accounts and health care coverage, are essential for attracting committed, quality workers. Sometimes, though, problems arise even when programs are set up with the best of intentions. Whether a shaky market shrinks funds or bad investment advice leads to sudden loss, companies need protection for their fiduciaries, who oversee benefits plans.

What does a fiduciary liability insurance policy generally cover?

A fiduciary's responsibility is to select advisors and investments, lower expenses and follow plan documents exactly. Since you can be held personally liable for a breach of fiduciary duties, it is important to have insurance coverage for this risk. A fiduciary liability insurance policy offers:

  • Protection from allegations of irresponsibility.
  • Protection from mistakes and omissions made in the administration of various employee programs.
  • Protection from common fiduciary claims such as administrative errors, wrongful termination of a plan, improper advice and conflicts of interest.

why should we consider fiduciary liability insurance?

A fiduciary's job is to select advisors and investments, minimize expenses and follow plan documents exactly. Under the employee

Retirement Income Security Act (ERISA), fiduciaries must act in the interest of plan participants in order to avoid liability claims related to the denial of benefits, administrative errors, improper advice, wrongful termination of a plan and similar allegations stemming from plan management.

In order for a company to protect its fiduciaries, fiduciary liability insurance is critical.

Here's How DiNicola Insurance Services Can Help

A good risk management program can help your practice avoid accusations of professional errors or negligence. At DiNicola Insurance Services, our advisors specialize in risk abatement, as well as management liability insurance. We will provide you with a review of your risk profile and insurance portfolio and will tailor a package based on your company's needs. You will get the coverage you need and nothing you don't.

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