Fiduciary Liability Insurance

-
Fiduciary Liability Insurance Fiduciary liability insurance is a specialized form of insurance that protects employee benefit plan fiduciaries against claims they mismanaged plans or assets. A policy can help pay for a legal defense or losses that arise when fiduciaries: -Make poor investment decisions -Mishandle plan records -Negligently hire plan service providers What does not fiduciary liability insurance cover? Fiduciary liability insurance does not cover crimes or other acts of intentional wrongdoing. It also does not cover embezzlement of a benefit plan’s fidelity bonds or other small business funds. What Does Fiduciary Liability Insurance Cover? -Making improper changes in plan benefits -Wrongfully denying benefits to employees -Providing improper or incorrect advice or counsel to the plan holder (employer) or participants (employees) -Giving advice that benefits the fiduciary but harms the plan holder (conflict of interest) -Making a poor decision regarding hiring plan service providers -Failing to properly supervise service providers -Making errors while administering the plan -Managing plan assets imprudently or failing to diversify those assets When these and other problems occur, fiduciary liability insurance will pay for the fiduciary’s defense costs as well as any settlements or judgments that arise from legal action. #BeNewinsurance #InsurTech #inclusiveinsurance #insurance #reinsurance #takaful

Comments

Post a Comment

Thank you for making this valuable comment.

Popular posts from this blog

Host Liquor Liability vs. Liquor Liability

-
Image
Host Liquor Liability vs. Liquor Liability Host liquor liability insurance does not cover companies that manufacture, sell, or serve alcohol as part of their business operations, such as bars, breweries, and restaurants. Instead, businesses that sell or serve alcohol for profit would need to purchase liquor liability insurance to gain protection from lawsuits related to inebriated patrons who cause bodily harm or damage to others. What is social host liquor liability? Social host liquor liability refers to the liability individuals assume as a host if they hold a social gathering where alcohol is provided, but guests aren't paying for it. It covers individuals, not businesses, and is typically included in homeowner's and renter's insurance policies. If someone throws a party and a guest causes property damage or injuries to a third party after becoming intoxicated, social host liquor liability can pay for the host's legal expenses if a lawsuit is filed. Hosts can b...
Read more

Business Owner’s Policy

-
Image
Business Owner’s Policy A business owner’s policy (BOP) is defined as the combination of two important forms of insurance commercial property and general liability into one convenient package. Business owner’s policies usually cost less than buying the two coverages separately. A business owner’s policy combines general liability and commercial property insurance coverage to protect you against lawsuits and damages. In one convenient package, it covers several major lawsuit risks your small business could face, including those resulting from: -Third-party bodily injuries -Third-party property damage -Product liability incidents -Advertising injuries Business owner’s policies also provide financial support when your building or commercial property (also called business personal property) is damaged by an incident the policy covers, typically: -Fire -Theft -Vandalism -Some weather-related events In addition to providing a financial backstop for your small business, a BOP also gives ...
Read more

Third-Party Cyber Liability Insurance

-
Image
Third-Party Cyber Liability Insurance Ransomware, phishing attacks, and data breaches are continuing to rise impacting more businesses each year. If one of your clients is hacked and sues your business, the resulting legal bills could be devastating. Third-party cyber liability insurance helps ensure that your IT business can survive the financial aftereffects of cybercrime. Scenario 1; Let's say you're an IT consultant hired to help your client step up a security protocol. You recommend antivirus software that has a few recent well-documented weaknesses. When your client's network is compromised and customers' sensitive financial information is stolen, the client blames you and files a lawsuit. Scenario 2; Where Company A, a clothing retailer, stores customer data like names, addresses, and credit card information on their servers. Unfortunately, due to a security flaw in their system, hackers gain unauthorized access and steal this sensitive customer data. At ...
Read more