Fiduciary Insurance

Fiduciary liability insurance is designed to protect businesses and employers from claims made due to a breach of their fiduciary duties. Fiduciary claims arise out of errors, but errors and omissions insurance (E&O) does not cover such claims. This makes fiduciary insurance important. Since ERISA does not legally mandate fiduciary insurance, most businesses aren’t aware of fiduciary liability.

Fiduciary coverage is important for all types of businesses like public and private businesses, non-profit organizations, and financial institutions. However, this is not important for small businesses that do not offer employee benefits.

Fiduciary insurance provides coverage under situations like:

1.Careless selection and supervision of service providers
2.Improper investments
3.Making unauthorized changes in the employee benefit plans
4.Prohibited transactions
5.Lost or incorrect benefits stemming from inadequate counseling
6.Mistakes in administering the plans itself
7.Conflict of interest
8.Not disclosing retirement plans properly.

There are certain exclusions in this policy like:

1.Failure to finance according to ERISA requirements
2.Acts of dishonesty
3.Criminal or acts of intentional wrongdoing
4.Intentional embezzlement.

Various factors impact the price of fiduciary insurance like:

1.Size of the business
2.Choice of insurance company
3.The industry of your business
4.Total assets
5.The amount of coverage you choose
6.The policy limits.

To learn more about Fiduciary Insurance, follow this link: http://quotezebra.com/fiduciary-insurance/