If your company offers employee benefits—such as a 401(k) match, pension plans, or health insurance—you are considered a fiduciary under the Employee Retirement Income Security Act (ERISA). This means you are legally obligated to act in the best financial interest of your employees.
Fiduciary Liability Insurance protects your company and its executives from claims alleging mismanagement or administrative errors regarding your employee benefit plans.
What Does It Cover?
Even well-intentioned HR departments and executives make mistakes. Fiduciary Liability steps in to cover defense costs and financial settlements arising from:
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Administrative Errors: Mistakes made while enrolling employees, updating plans, or explaining benefits.
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Poor Investment Choices: Claims that the executives managing a 401(k) selected underperforming or overly expensive funds, costing employees their retirement savings.
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Improper Advice: Giving incorrect information to employees regarding their benefit allocations or retirement planning.
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ERISA Violations: Defense against regulatory actions or lawsuits claiming a breach of fiduciary duty.
The Management Liability Trio
Fiduciary Liability is an essential piece of a complete corporate safety net. While D&O (Directors & Officers) covers executive decisions and EPLI (Employment Practices Liability) covers HR disputes like wrongful termination, Fiduciary Liability is the only policy that protects you specifically against benefit mismanagement claims.
Serving Employers Coast to Coast
Benefits compliance is complex. Barefoot Insurance Broker works with businesses in almost all U.S. states to ensure that the executives managing employee benefits are protected from devastating personal and corporate liability.
Secure your leadership team today.