Hignojos Insurance Agency will guide you through your liability claims.
Employee benefit plan fiduciaries are shielded from accusations of improperly managing assets or programs by specialized insurance known as fiduciary liability insurance. A policy can assist in covering the cost of defense or losses sustained when fiduciaries make unwise investment choices, neglect plan records, or employ plan service providers carelessly.
When such errors are made a plan administrator may be held personally responsible for any losses incurred by employees. When workers file lawsuits to recover the losses, they sustained due to an issue with their employer’s retirement or health and welfare plan, fiduciary liability insurance acts as a financial safety net.
The Employee Retirement Income Security Act of 1974 is a federal law that applies to small firms that offer retirement plans or other types of employee benefits (ERISA). This rule imposes what it deems the “highest duty known to law” (fiduciary duty) on those who administer retirement savings and other benefit plans.
Any individual or organization that breaches a fiduciary obligation is liable under ERISA. This implies that the plan fiduciary may be required to compensate the employee for financial losses. Fiduciaries engaged with employer plans have a great deal of personal accountability for their errors.
For this reason, plan fiduciaries must take essential steps to reduce risk by purchasing fiduciary liability insurance. It shields you from going bankrupt personally if your professional errors cause plan participants to lose money. Hignojos Insurance Agency will always provide you with the best range of coverage for your fiduciary liability claims.