April 23, 2014

When Do I Need Fiduciary Liability Coverage?

If you are an employer offering retirement or health plans to your employees you may have a fiduciary liability coverage exposure.

As an individual involved in the management of a retirement or health plan, you may personally be required to make the plan whole for losses caused by breach of duty on your part.

The Department of Labor indicates that it is the responsibility of a fiduciary to vet and monitor any outside vendor. In the event that a service provider is at fault, you may still be accountable for losses.

Each year, an average of 9,000 ERISA lawsuits are filed. The cost to defend and resolve an ERISA suit can be overwhelming.