Fiduciary Liability Insurance was developed to protect those individuals who administer employee benefits plans that are subject to ERISA, the federal law which governs those plans. An individual who is deemed to be a Fiduciary is subject to Personal Liability (meaning their personal assets) in the performance of their duties.
Types of Employee Benefit Plans subject to ERISA:
- Defined Benefit/Contribution Plans
- 401K Plans
- Health/Medical Plans
- Dental Plans
Who can Sue for Breach of Duty?
- Participants (Employees) or Beneficiaries
- US Department of Labor
Types Of Actions that Lead to Claims:
- False of Misleading Statements
- Imprudent Investments
- Diversification or Failure to
- Non-Compliance with Plan Documents
- Errors in the Administration of Plans
- Selection of or Failure to Monitor Outside Investment Manager