There’s an old adage that basically says with great responsibility comes great expectations. This is true for businesses and organizations that are responsible for large sums of money as well as the well-being and safety of their employees. A number of insurance coverages are available to help such entities manage their exposures and operational risks. Similarly, trustees of a retirement plan or other fiduciaries are also exposed to claims and lawsuits by nature of their work. A fiduciary responsibility insurance approach is crucial for anyone who oversees a defined benefit plan.
Understanding Fiduciary Liability Insurance
Fiduciary liability insurance plans help protect benefits plan administrators from claims or lawsuits in an ever-changing economy. Such insurance is strongly recommended for the following types of plans:
- Pension and health
- Defined benefit and defined contribution
- Employee stock ownership
- Church and religious
- Cash balance
- Health and welfare
These are just some of the types of plans that benefit from fiduciary liability coverage.
Covering My Risks
Allegations of funds mismanagement and other claims can subject administrators to serious financial harm. It’s important to have coverages in place that protect and preserve your interests and your pockets. Look for a provider with knowledgeable and experienced professionals who can help you develop a tailored plan that leads to the resolution of complex claims.