Being a fiduciary holds a lot of responsibility, as working in this role is a promise to act and make decisions that are in the best interest of a single individual or group of individuals. The more people who trust you to act on their behalf, the greater the responsibilities of your role. The liabilities you face in this role can be addressed through fiduciary insurance coverage, whether the policy is written for a particular individual or for business employees filling this role.
The Protected Services
Fiduciary liability plans are protections against administrative errors and omissions as well as the personal liabilities related to their involvement with the oversight of employment benefits and plans. Common claim allegations covered by these policies often include:
- Negligence in plan administration
- Breaching the ERISA fiduciary duties
- Poor or careless investment decisions
- Improper or misuse of retirement funds
- Improperly denying plan benefits
- Failing to maintain vigilance with third-party vendors or service providers
- Failing to meet obligations of healthcare privacy or insurance laws
Those Who Need Protection
Companies that provide employee benefits should purchase coverage for their organizations, but any individual who acts as a fiduciary should also have comprehensive coverage. Fiduciary roles include the administration of medical, disability or life insurance plans as well as retirement plans.