Do You Need Fiduciary Liability Insurance
Do you need Fiduciary Liability Insurance? If you personally handle assets, administer benefits plans, sign checks, or send members of your organization to other firms that handle a 401(k) plan, then you are subject to claims alleging a breach of fiduciary care. Fiduciary liability insurance is a very important coverage for businesses today, because individuals with fiduciary duty may be held personally responsible for claims arising from the mishandling of funds within your organization. Fiduciary liability insurance may cover the losses associated with such claims and offer defense coverage for the fiduciaries and the organization itself.
Oftentimes, business owners think they are covered for these types of events because they have employee benefits liability insurance in their commercial package policy. While employee benefits liability insurance can cover administrative errors in the handling of funds and retirement packages, it does not protect against errors resulting in a breach of the fiduciary responsibility by individuals in your organization. For that, you need fiduciary liability insurance. Talk to one of our specialists about the difference between these policies and if you have a need for this important coverage.
Even professionals make mistakes and sometimes they are unavoidable. While mistakes made by you or your employees may be unavoidable, they shouldn’t leave you and your business exposed to potentially devastating liabilities stemming from lawsuits. Contact Rettino Insurance TODAY for a free quote.