Are your Personal Assets Protected From Fiduciary Liability?Fiduciary Liability Insurance provides protection for the personal assets of individuals that serve in a fiduciary or trustee capacity for their company's 401-K plan or other employee benefit plans. The Employee Retirement Income Security Act of 1974 (ERISA) states that the individuals who serve as fiduciaries for their benefit plan, such as a 401-K or ESOP (Employee Stock Ownership Plan), can be held individually responsible for alleged errors, omissions, or breach of their fiduciary duties. By accessing the advice of experts and choosing quality, diverse investments, fiduciaries can lessen their personal liability exposure, but not eliminate it.
Privately Owned Companies Are Also At RiskPrivately owned companies can be sued by not only plan participants (employees), and their estates, but also by the Department of Labor and the Pension Benefit Guarantee Corporation. Covered plans can include defined benefit palns, defined contribution plans, health and welfare plans, ESOPs, excess benefit plans, government mandated plans, and insurance for Workers Compnesation, unemployment, social security or disability
benefits for employees.
What Are Some Common Factors Exposing Fiduciaries to Liablity?Wrongful Acts may include breach of fiduciary duty, negligent acts, errors or omissions in the administration of advice to employees, plan interpretations, handling plan records, effecting enrollment or terminations, cancellations of any employee under an employee benefit plan or government-mandated plan, or any other matter claimed against the fiduciary as a result of performance of their duties for the benefit plans.