Fiduciary Liability Insurance – All You Should Know

What Is Fiduciary Liability Insurance?

Fiduciary liability insurance, also known as management liability insurance, is a type of business insurance coverage that is intended to protect businesses and employers against claims resulting from a breach in their fiduciary duty.

What Does It Cover?

Fiduciary liability coverage protects plan fiduciaries against claims alleging that they mismanaged an employee benefit plan or plan assets. For example, wrongful denial or improper change in benefits, making risky investments in a defined benefits pension plan, errors in administering plans, delayed balance transfers, etc.

Keep in mind that the policy does not extent to third party advisers, consultants, or administrators of your benefits plans.

Do I Need It?

It is not required by the Employee Retirement Income Security Act or any federal statute. However, when you start providing any type of employee benefits, you may need fiduciary insurance to provide you with a layer of protection, and peace of mind.

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About Dale Williams

Dale Q. Williams, MBA, is a well-respected financial executive whose experience spans from insurance to investment banking. Dale has first hand underwriting experience through working for one of the largest U.S. based insurance carriers, and advisory experience from working for several bulge-bracket and middle-market investment banks. Dale also received his MBA from University of Chicago Booth School of Business, with concentrations in finance and accounting.