Fiduciary Liability Insurance

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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

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