What Is Fiduciary Liability Insurance?
Fiduciary liability insurance, also known as management liability insurance, is a type of business insurance coverage that is intended to protect businesses and employers against claims resulting from a breach in their fiduciary duty.
What Does It Cover?
Fiduciary liability coverage protects plan fiduciaries against claims alleging that they mismanaged an employee benefit plan or plan assets. For example, wrongful denial or improper change in benefits, making risky investments in a defined benefits pension plan, errors in administering plans, delayed balance transfers, etc.
Keep in mind that the policy does not extent to third party advisers, consultants, or administrators of your benefits plans.
Do I Need It?
It is not required by the Employee Retirement Income Security Act or any federal statute. However, when you start providing any type of employee benefits, you may need fiduciary insurance to provide you with a layer of protection, and peace of mind.
If you need any business insurance comparison services, please go to EINSURANCE.com.