Fiduciary liability insurance helps protects fiduciaries against losses arising from the administration and management of employee benefit and pension plans. Common claims allege Employee Retirement Income Security Act of 1974 (ERISA) violations, negligent advice, careless plan management, and errors and omissions.
If a company sponsors a pension, 401K or health plan, the company and fiduciaries are at risk of a lawsuit. Under ERISA law, directors, officers, trustees, and other fiduciaries can be held personally liable for the decisions they make when managing plans or advising plan participants – even if it’s an honest mistake.
CNA Fiduciary Liability Insurance provides coverage for a wide range of potential exposures:
- Breach of fiduciary duties under ERISA and similar statutes
- Errors and Omissions in plan administration
- Imprudent choice of insurance companies, investment options, or third-party service providers
- Remiss investment strategies
- Careless plan management
- Mishandling of records
- Conflicts of interest
- Faulty or negligent advice or counsel to plan participants
- Improper amendments to plan documents
- Improper disclosure to plan participants
- Errors in providing interpretations with respect to any plan
- Errors in enrolling, terminating or canceling employees under any plan
|Helping Fiduciaries Prevent and Manage Risk|