If you own a business or are an employer, you have a lot to keep track of. One thing that a lot of business owners don’t consider is the possibility of claims regarding the mismanagement of a company’s employee benefit plans.
Unfortunately, this is a real possibility and one that can have serious downsides if you are forced to deal with it yourself. A claim of this nature can end up costing you a large amount of legal fees to defend against it. This is where fiduciary insurance can come in to help.
What Types Of Claims Can Fiduciary Insurance Protect Against?
Fiduciary insurance generally protects businesses and employers against any claim regarding a breach of fiduciary duty. An example of this could be someone claiming that poor or negligent investment practices were used when dealing with their 401k.
Another example could be claims of lost health benefits due to errors in counseling or unclear interpretation to employees. Claims of this nature can be devastating to a business that doesn’t have adequate insurance coverage.
Is Fiduciary Insurance Included In Typical Liability Policies?
Unfortunately, fiduciary insurance is not typically included in other types of liability policies. Even E&O insurance does not cover fiduciary claims, due to the fact that they generally occur between employer and worker, not business and customer.
When handling employees’ benefit plans, there is always the chance that an error could be made. Fiduciary insurance can make sure you are adequately protected.