fiduciary liability

Fiduciary Liability insurance provides protection against claims for financial loss by employees alleging mismanagement or negligence in the administration of your employee benefit plans. Coverage enhancements vary from company to company; this protection can be written on a stand-alone basis or combined with other executive liability coverages.

Companies Need Fiduciary Insurance:

• To avoid personal liability and loss of corporate and plan assets

• For protection in the event of merger or acquisition and because

• There is no immunity from fiduciary liability lawsuits

• There is an inherent conflict of interest between the Directors’ & Officers’ duties to the company and to the plan

• The stock market will not always move up

• Many Directors’ & Officers’ don't realize that they are fiduciaries

• The plaintiff’s bar may view such a suit as a new sources of revenue