Companies face a danger of lawsuits relating to fiduciary liability. As such, it is the company’s responsibility to protect employees in charge of financial and personal accounts with fiduciary liability insurance.
Who Is This Insurance For?
This type of policy is designed specifically for individuals in charge of finances, such as savings, profit sharing, and pensions, as well as benefit plans, such as healthcare, employee benefits, and wellness. A fiduciary can be any of the following individuals within a business:
How Does This Insurance Help?
Research at Axis Insurance states that this insurance is essential in assisting with legal fees and defense costs associated with claims filed against a fiduciary. The nature of the work done by fiduciaries is often personal and involves financials, which makes it highly sensitive. As such, claims filed against fiduciaries can be damaging to the company. This insurance can cover the following types of claims:
Poor investment choices
Errors in benefit plans
Missing or unfiled reports
Insuring Your Fiduciaries
Being in charge of and overseeing sensitive data relating to an individual’s financials or benefits comes with a lot of responsibility. It is vital for any business that handles this type of information to have fiduciary liability insurance to protect your employees and your brand.