ERISA Fiduciary Insurance... Protecting against liability

[LiamLE]

Many directors and officers don't realize they're considered fiduciaries, but under ERISA, they can be personally liable for breaches of fiduciary duty, putting both personal and plan assets at risk. Fiduciary Liability Insurance helps protect against such claims by covering legal liability and safeguarding fiduciaries' personal assets, and ERISA explicitly allows its purchase. In fact, i must say, failing to secure this coverage could itself be seen as a breach if insurance was available . CKR Law recently published an expert overview on the importance of fiduciary insurance in protecting those who manage or provide services for employee benefit plans.

 

[sunlighttt_88]

I totally agree. I joined the board of a nonprofit in 2021, and we didn't know we were in charge of the retirement plan under ERISA rules. A consultant pointed it out, and we got Fiduciary Liability Insurance right away. It made everyone feel safer. It's one of those things you don't think about until you see the risk.