When your business hires employees, you take on a fiduciary duty to the people you employ. In the context of the business world, a company’s fiduciary responsibility includes things like ensuring your firm’s retirement plans and employee benefit programs act in accordance with the law. Every company that’s been around for a while has their own fiduciary liability insurance claim examples, but it’s important to remember that regardless of how it happens, you don’t have to face the specter of legal action against your company by yourself. Fiduciary liability insurance exists to protect your company from lawsuits stemming from fiduciary violations, even if the violations are the result of a third-party, such as a plan administrator.
While many fiduciary liability insurance claim examples exist, breaches of this duty generally fall into four broad topics: poor advisement, pension rights, administrator inaction and missed calculations. Mistakes on the part of your company in any one of these or other fiduciary areas, even if it’s something as mundane as an improperly notarized form, can potentially lead to a lawsuit against you or your firm. Fiduciary liability insurance can provide you with the coverage your company needs to survive these lawsuits.
You’ve worked hard to get your business where it is today, so make sure you protect your firm against claims of fiduciary failure by consulting with an insurance specialist today.