Fiduciaries of employee benefit plans have a duty to act in the best interests of their plan participants. Professionals who have a fiduciary responsibility to employees or clients can be held financially liable if they violate the requirements imposed by the Employee Retirement Income Security Act (ERISA).
Merely being accused of a violation can result in expensive legal fees, and actual violations may lead to sizeable settlements.
Fiduciary liability insurance gives trustees, employers, fiduciaries, professional administrators, and the plan a broad spectrum of protections. Policies are available for employee benefits managers and those who manage client assets, and specific protections can be adjusted to meet particular individuals’ or businesses’ needs.
- Administrative Errors
- Conflicts of interest
- Improper counsel or advice
- Failures to adequately fund plans
- Wrongful plan terminations
- Denials or changes of benefits