fiduciary liability
Fiduciary liability protects companies from claims of mishandling and the legal liability coupled to serving as a fiduciary.
Under the ERISA law of 1974, employees participating in benefit plans will receive the benefits promised by such offerings. This law created exposures for employers that offer benefit plans. This law however does not require employers to offer such plans but rather it monitors the plans to make sure they meet certain criteria.
Why Fiduciary Insurance is Important
If and when a professional or business:
- Errors in administering plans.
- Gives poor advice.
- Prohibits financial transactions.
- Unacceptable enrollment or terminations.
- Wrongful denial of benefits.
Common Fiduciary Coverage Topics:
1: Offer to review standard operating procedures.
2: Develop a plan for employees for worst case scenarios.
3: Develop talking points about various topics, including conflicts of interest, failure to administer plans according to documents and improper advice.
helpful information: