As an employer, you want to offer a rich benefit package to your employees. One of these benefits may be a 401K or other defined benefit plan. Of the more than 600,000 defined benefit plans in the United States, almost 40% of the sponsors of the plans don’t consider themselves a fiduciary. Those 40% may be shocked to find out that they are wrong.
Fiduciary liability insurance covers sums you may be obligated to pay as a result of an actual or alleged wrongful act or breach of your fiduciary duties, your defense costs, ERISA fines and fees and penalties imposed by the IRS or Department of Labor.
As a plan fiduciary you have discretional control over employee benefit plan assets. Certain fiduciary duties cannot be delegated. Examples of the duties of a fiduciary are:
None of your other liability policies will cover fiduciary claims-- NOT your unendorsed D&O, NOT your Employment Practices, NOT your ERISA bond – all have exclusions for fiduciary liability claims. Ready to learn more? Contact your Bilz representative.