Employee benefit and pension plan trustees and administrators carry a heavy burden of responsibility.
They have a legal duty to act in the best interests of the plan members and the plan sponsor. This is called fiduciary responsibility.
Even with an external administrator in place, trustees can still be liable.
A few of the risks facing benefit and pension plan administrators and trustees:
- Administration errors
- Improper advice or counsel
- Conflict of interest
- Imprudent investment
- Denial or change of benefits
- Incorrect benefit calculation
- Wrongful termination of the plan
The potential for loss is considerable
In pension and benefit plans, there can be claims of irreparable loss, so the cost to your organization is considerable. Whether a wrongful act is actual or alleged, you must defend your case. Even if you win the case, your defence costs can be substantial.
If you have a pension or benefit plan, you need fiduciary liability insurance for:
- Legal defence costs
- Damages resulting from wrongful acts
To find out more about insurance for fiduciary liability, contact us today.