Fiduciary Liability is a separate line of coverage that protects both your company and the individuals who administer your 401K plan. The ERISA bond insures only the assets of the plan (required by Federal Law to be a minimum of 10% of the plan assets). The ERISA bond does not provide protection from lawsuit for the company who offered the plan or the internal individuals who administer the plan.
Fiduciary Liability provides not only coverage for negligent administration of the plan but also defense costs and personal liability for actions or inactions resulting in breach of fiduciary responsibility.
The absence of Fiduciary Liability jeopardizes the company’s assets as well as the personal assets of the administrators. If you answer “yes” to any of the items below, you should contact one of our Commercial Producers to further discuss Fiduciary Liability:
1.) Does your company offer employees plans such as: Health Insurance, 401K Plans, Stock Options or COBRA Benefits?
2.) Does your company administer any of the above plans internally, including new hire paperwork enrollment?
3.) Has your company hired an outside (Third Party) administrator to manage the plan?
