Employee benefit plans can be complex and vary from business to business, and the responsibilities of fiduciaries can vary as well. Holding fiduciary insurance can help protect these individuals in your company from claims of mismanagement.
Who is Covered
This type of insurance can cover employees at every level–essentially, it protects anyone involved in administering or managing your employee benefits plan. This means everyone from payroll employees to executives can be covered under the same plan.
What is Covered
Fiduciary insurance covers poor decision-making as well as negligence. These plans provide protection in the case of someone making ill-informed investment decisions, poorly selecting providers, or being negligent in the handling of plan records.
Importance of Coverage
Poor action or negligence by fiduciaries can lead to litigation, resulting in hefty legal fees and valuable time lost in court. This risk has increased over time as employers and fiduciaries find themselves more often being held accountable for these actions. Having proper protection can decrease or avoid these losses.
Handling employee benefit plans is a complicated process that involves individuals at many levels of a company. Maintaining strong fiduciary insurance coverage can help protect your company’s time and assets in the event of bad decision-making or negligence at any of these levels.